Ailing Dreamworld looks to unlock its real estate potential

Anna Kelsey-Sugg and Joanna Crothers
May 24, 2017, updated May 24, 2017

Dreamworld is looking to exploit the real estate potential of some if its land. Photo: AAP

Dreamworld owner Ardent Leisure is looking at unlocking value from parts of what it calls the Gold Coast theme park’s “prime real estate”.

Ardent, which this month flagged a full-year loss from its theme parks after visitor numbers and revenue fell after last year’s fatal accident at the park, said on Wednesday it has appointed a town planner to examine the feasibility of rezoning parts of the site for alternative uses.

“Dreamworld is located on prime real estate adjacent to the new Coomera town centre and core infrastructure,” Ardent said in a statement to the Australian Securities Exchange.

“Ardent has, and will continue to, engage with third-party developers to discuss potential development opportunities and timing for any redevelopment within the precinct.”

Ardent did not say what those uses could be, but added that it is committed to ensuring the theme park remains a key Gold Coast tourist attraction.

Ardent last month announced the CEO Deborah Thomas was stepping down to be replaced by former Nine Network chief financial officer Simon Kelly.

Ms Thomas was at the helm of the company during the 2016 Dreamworld ride tragedy, which saw four people lose their lives when a ride malfunctioned.

In a statement at the time, Ardent said Ms Thomas would begin a new role as chief customer officer and chief operating officer for Australasia from July.

The company was hit with a $50 million loss in the wake of the rapids ride tragedy, which saw Dreamworld shut for 45 days in late 2016.

“The effects of this tragedy will be felt for some time and there is much healing still to take place,” Ms Thomas said in February.

Ardent, which also operates WhiteWater World on the Gold Coast, earlier in May said it expects theme park earnings before interest, tax, depreciation and amortisation for the year to June 30 to be negative by between $2 million and $4 million.

Combined visitor numbers for March and April were down 36.7 per cent, and revenue was 38.9 per cent lower, reflecting the impact of last year’s four deaths as well as Cyclone Debbie in March.