Partners Group in Talks for $640m Hamilton Island Acquisition

Private equity firm Partners Group Holding AG has shown initial interest in Hamilton Island as the family owners of the holiday destination in Australia conduct a strategic review for the asset, according to people familiar with the matter.

The buyout firm is studying the resort island for a potential bid, said the people, who asked not to be identified as the information is private. Partners Group and the Oatley family, who own Hamilton Island, have held preliminary discussions, the people said.

There’s no guarantee that a deal will happen and the Oatley family may decide to keep the assets for longer after a strategic review, the people said. There are also other parties potentially interested in the resort, they added.

Representatives for Partners Group and Oatley family’s investment office declined to comment.

Any deal would mark a new era for Hamilton Island, an icon of Australian tourism that was developed into a resort in the 1980s. The island comprises hotels and holiday homes as well as a golf club and a commercial airport, its website shows. It’s the only major developed island in the Great Barrier Reef. It costs about A$16m ($10m) a year to maintain the resort’s utilities and infrastructure including its own power house, dams and a reverse osmosis plant, according to a company fact sheet.

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Hamilton Island has been owned by the Oatley family, an Australian winemaking dynasty, since 2003. The family hired UBS Group AG this year to review options for the business, which could be worth about A$1bn, the Australian Financial Review has reported, citing unidentified people. Mulpha Australia Ltd., an investment firm backed by Malaysian conglomerate Mulpha International Bhd., has also shown interest, the AFR reported in September.

Founded in 1996, Partners Group manages about $142bn in assets globally, its website shows. Its portfolio companies range from industrials and health care to real estate and financial services. The company hired Toby Mannock as managing director and head of private equity for Australia in July and has said it plans to target one to two direct private equity investments per year in Australia and New Zealand.

Source: Yahoo! Finance

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