Article in The Australian Business today::Packer interest is...

Article in The Australian Business today::Packer interest is good news for ski fields:::Maurice Dunlevy | May 29, 2008
THE likelihood of Packer family control of most of the Victorian snowfields has already had an effect on resort real estate markets.

Aftera chilly Melbourne autumn, buyers have already started to look at the ski fields. Picture: Maurice Dunlevy
Only 10 days ahead of the official Queen's Birthday Weekend start to the ski season, agents in all three major Victorian resorts have reported higher than usual inquiries from buyers.

"The market is very excited about the prospect of having James Packer at Mt Hotham and Falls Creek," RT Edgar Alpine director Christa Zirknitzer said.

With the cold Melbourne autumn regarded as a good pointer to a second successful ski season, buyers have already started to look at the Victorian ski fields, where in locations such as Falls Creek modern studio apartments can be bought from $185,000, with returns of 6 per cent.

The Packer snowfields bid -- made through Arctic Capital, the new Hong Kong-based investment arm of Consolidated Press Holdings -- still has a way to go in its attempt to bale out Living and Leisure Australia Group, the former MFS Living and Leisure Group.

Arctic has agreed to underwrite a minimum $90 million rights offer issue that will recapitalise the former MFS company, as well as taking over $63 million of debt.

The deal gives Arctic the right to purchase the responsible entity of LLA, delivering control of mostly ski resort and aquarium assets, but is conditional on support from the National Australia Bank, which is owed more than $127 million by the group.

The NAB wants its money back in full by Friday, June 13, but LLA must provide satisfactory evidence by this Friday that it can repay the debt.

Despite these obstacles, confidence is high at Mt Hotham that the deal will go ahead.

The future of a proposed $500 million village redevelopment, which includes a Bale luxury apartment complex, has been in doubt since MFS -- which controlled the Mt Hotham village and ski lift operations at nearby Falls Creek -- hit the wall in January.

The Ray Group had been MFS's alpine development partner, but after completing residential and other developments at Dinner Plain, it is no longer involved with LLA.

While Mt Hotham is Victoria's largest resort, much of this season's real estate action will be at Falls Creek, where several luxury apartment developments are under way.

Melbourne-based developer Morry Schwartz is behind a $40million development known as Zacamoco.

The 62-apartment complex will not be ready until next year. But according to Ms Zirknitzer, apartments are selling for between $435,000 and $1.35 million.

The Jayco family, of caravan fame, is behind another smaller Falls Creek luxury apartment complex. Its five three-bedroom apartments will sell for more than $1 million each.