Industry News
In a significant move signaling a strategic pivot, the Grollo family—longstanding developers and owners of Buller Ski Lifts at Mount Buller, Australia—are preparing to sell the Kooroora Hotel, a cornerstone hospitality asset in the alpine village. This sale marks the family’s first divestment to an investor rather than an owner-occupier, as the family advances plans to establish a $1 billion institutional-grade fund dedicated to alpine and regional key worker housing.
The Kooroora Hotel, a modern two-level venue encompassing 811 square meters, stands prominently at the foot of the Bourke Street ski run, overlooking Mount Buller’s Village Square. With a history spanning over 50 years, the hotel was rebuilt five years ago as part of a broader redevelopment initiative. It features a rare 3 a.m. license, alfresco dining, a state-of-the-art soundproofed basement nightclub, and secure car parking. The property is currently under an eight-year lease with the Maisano Group, experienced hospitality operators in the Victorian Alps, guaranteeing fixed 3.5% annual rent increases and generating a net income of approximately $259,192 per annum.
Initially slated for auction through Burgess Rawson, the sale was postponed due to incomplete documentation. However, marketing efforts have attracted interest from buyers looking to acquire the property through self-managed super funds (SMSFs), with a transaction anticipated in the near future. The property is currently listed with Castran.
According to the AFR, proceeds from the sale are expected to support the Grollo Group’s ambitious plan to develop up to 10,000 key worker housing units across regional areas. This initiative addresses the pressing need for affordable housing for seasonal and essential workers in Australia’s alpine regions. The group is collaborating with local authorities to secure permits for approximately 1,800 beds on land they control at Mount Buller, Bogong Village near Falls Creek, and around Mount Hotham Airport, which they acquired in late 2022 for over $6.5 million.
Under current plans, the development includes 400 beds at Mount Buller, 300 at Bogong Village—adding to the existing 200—and about 600 beds at Mount Hotham. These projects, valued between $120 million and $130 million, would significantly expand the group’s existing $40 million to $50 million housing portfolio.
The Grollo Group’s broader vision involves creating a managed fund with a portfolio of up to 10,000 key worker housing units, potentially attracting institutional investors such as superannuation funds. This move aligns with the growing interest in the build-to-rent sector, particularly in regional areas where housing shortages for essential workers are acute.
The family’s history in the alpine region dates back to 1987, with substantial investments in Mount Buller through their entity Buller Ski Lifts. Their holdings include skiing facilities and infrastructure, a ski school, the Mount Buller Chalet Hotel and Suites, the ABOM Hotel, and various retail properties in Mount Buller and the nearby town of Mansfield.
The sale of the Kooroora Hotel and the development of key worker housing represent a strategic shift for the Grollo Group, focusing on addressing critical housing needs while providing stable, long-term investment opportunities for institutional partners. Expressions of interest for the hotel closed on May 22, but no announcement regarding a sale has been made as of yet.
