Blue Dolphin Holiday Resort mystery

The Blue Dolphin Caravan Park Holiday Resort mystery.

Image from HomeHound

There had been rumours drifting on the wind for some time that current and planned Mitchell family partnered developments on the Clarence Coast were not as sought after as was previously anticipated by investors.

Now comes confirmation that all is not rosy in the garden and the possibility that sell-offs are in the air:

In June 2008 we anticipated that there would be some pick up in the residential market but no further sales have been forthcoming for the Stage 1 development. After a number of reviews with the Mitchell family the decision has been made to place the development of Blue Dolphin on hold, since it is unlikely there will be significant demand for coastal resort style residential property for some time. We have therefore not taken possession of Stage 1 of the site or increased the debt facility as originally envisaged in our June 2008 Investor Update.
There have been a number of parties interested in acquiring Blue Dolphin, however the Responsible Entity (RE) has determined that current offers are not in the interests of unitholders. There are five years left on the Freespirit lease, and there is a substantial concept plan approval on the site. The concept plan approval has another 3.5 years to run before a construction certificate will be needed for a substantial commencement of the first stage, and it is expected that the residential market should pick up by mid 2010.

Selling off individual Blue Dolphin cabins does not appear to indicate confidence in the way ahead, but many Yamba residents will welcome the news that the NSW Government-approved proposed overdevelopment of this waterfront site is delayed.

As for other Mitchell interests - according to Mariner Coastal Land Fund (the unlisted property trust) Yamba Waters has unsuccessfully been offered for sale.

It is also understood that, due to the global financial crisis, Babcock and Brown is seeking a buyer for its percentage of the Angourie Rainforest Resort which it apparently accquired in 2006.