Run-down Lindeman Island sells for $12m

Queensland's Lindeman Island has been sold for $12 million - less than was anticipated - to Chinese investors.

Advertising group White Horse Holdings purchased the island after the Lindeman Island resort was closed by Club Med in January.

CBRE Hotels Qld sold the company to the Chinese firm with agent Paul Nyholt telling the Mackay Daily Mercury that widespread interest had been fielded from within Australia and overseas.

"Interest in the asset came from a range of potential buyers, including a number of high net worth individuals as well as various Australian investors looking to syndicate the acquisition," he said.

Tourism Whitsundays chief executive officer Peter O’Reilly told the paper the island was in ‘‘bad need of a refurbishment’’, reflected in a lower-than-anticipated sale price.

The company said it was reviewing its options for a revamp.

"White Horse is examining how to re-position Lindeman as an attractive tourist destination but the resort has been through some very challenging times," White Horse Australia chairman William Han told the Daily Mercury.

"We’re looking at a range of options to reinvigorate the island but it will take some time to assess the best way to move forward."

The Lindeman resort was Club Med’s only Australian property.

But Club Med Australia and New Zealand general manager Quentin Briard said late last year the firm needed a different location for a resort to satisfy customer demands.

‘‘Our on-going research shows that more and more, our guests want our new premium all-inclusive product, and Lindeman’s three trident [three-star] status... was not in that category," Briard said in a statement.