10/12/2008 - 09:28

Broadwater, Humfrey on acquisition trail

10/12/2008 - 09:28

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Broadwater Hotels and Resorts chief executive Scott Cogar has bought a majority stake in the company following a management buy-out from Futuris Corporation, and has teamed up with developer Barry Humfrey.

Broadwater, Humfrey on acquisition trail

Broadwater Hotels and Resorts chief executive Scott Cogar has bought a majority stake in the company following a management buy-out from Futuris Corporation, and has teamed up with developer Barry Humfrey.

 

Below is the announcement:

Broadwater Hotels and Resorts (Broadwater) and Humfrey Land Developments (HLD) today announced plans to pursue the development and management of a number of upscale resorts in Australia to take advantage of current global market conditions.

Broadwater is a (4 to 5 star) resort management company specialising in the development and management of integrated resorts located in key regional tourism destinations.

HLD is Western Australia's most successful regional developer with significant interests in quality resorts, residential sub‐divisions and project management.

HLD currently has joint ventures with the WA Government, Hawaiian and Aspen property groups to develop the Seacrest masterplanned community (1260 lots), Seafields residential estate (210 lots) and the Broadwater Mariner Resort and residential development (122 strata apartments and residences) in Geraldton. HLD is developing the Big Grove residential community (200 lots) in Albany in its own right.

These residential projects are valued at $270m and are at advanced stages of development.

Barry Humfrey is also developing $300m of 4 to 5 star resorts in Western Australia including the strategic locations of Exmouth, Abrolhos Islands and Geraldton ‐ which will be managed under the Broadwater banner ‐ and is also a leading member of the Broadwater Consortium which is preferred proponent to develop a 4.5 star resort on Rottnest Island off Perth.

 Broadwater Mariner Resort, Geraldton, WA ($40m)

 Broadwater Norcape Lodge Resort, Exmouth, WA ($100m)

 Broadwater Rottnest Island Resort, Perth, WA ($55m)*

 Broadwater Abrolhos Islands Resort, Coral Coast, WA ($35m)*

 Broadwater Resort, Leeman, WA ($70m)*

*These projects are highly strategic development sites for which regulatory approvals are being sought.

Following completion of these projects Broadwater will operate 8 resorts in the 4 to 5 star market and will be a key player in he upscale resort segment in regional Australia.

Broadwater was recently acquired by the group's Chief Executive, Scott Cogar, under a management buy‐out (MBO) from ASX listed Futuris Corporation Limited while interests associated with Barry Humfrey, the founder of HLD, own the balance of shares in Broadwater.

The MBO of Broadwater includes the group's management contracts, Broadwater Business School operated in collaboration with Southern Cross University and the Australian School of Tourism and Htel Management, its Perth head office, technology platforms, and financial interests in a number of high profile resort developments throughout Western Australia.

Prior to joining Broadwater, Scott Cogar held executive management roles with Hamilton Island and Qantas Airways during their well publicised listings (IPO) on the Australian Stock Exchange and with Stamford Hotels and Resorts for its successful de‐coupling from parent 'Singapore Shipping' on the Singapore Stock Exchange.

Broadwater recently completed a significant re‐structure of its business following the sale by Westralia Property Trust (which controlled four Broadwater properties) of all of its tourism property assets in Busselton, Dunsborough, Kalgoorlie and South Perth in Western Australia.

In October 2008, Broadwater was appointed to manage the multi‐award winning Shoal Bay Resort and Spa in Port Stephens, NSW (winner of Best Resort in NSW 2008 and Best Deluxe Accommodation in NSW 2008), which offers 190 suites and apartments, conference centre, 4 restaurants, 5 bars, hotel, bottle shop and gaming operations, employing over 250 people.

For year ended 30 June 2008, Broadwater delivered its third successive year of double digit profit growth and expects to generate $40m in tourism revenue and employ over 300 people in 2009, with well developed plans to more than double its current business over the next two years.

Commenting on these developments, Mr Scott Cogar said, "Barry Humfrey and I believe the next twelve months will be a defining period for the tourism industry within the context of gloal market conditions. There will be enormous scope for accelerated expansion of our development projects, management contracts and the Broadwater brand during this unique window of opportunity."

Barry Humfrey said "we have established a strong investor base over the last 30 years which now includes the WA Government, Hawaiian and Aspen and in my experience funding is always available for quality projects".

"Broadwater, which is essentially debt free, is ideally placed to secure further management contracts for upscale resorts which are underperforming or which require signifcant restructure or innovation to unlock their underlying potential," Mr Cogar said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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