Industry News
The Grollo Group has announced a plan to turn half of the village of Bogong in the state of Victoria, Australia, into housing for seasonal workers. Bogong is situated halfway between Falls Creek Ski Resort and Mt. Beauty. The Grollo Group owns Buller Ski Lifts, which operates the Mt Buller Ski Resort in Victoria. The Grollo Group secured a 73-year sublease on land in the village from Australian electricity company AGL, which had used the village for housing staff for the Kiewa Hydro Electric Scheme from 1940-1961. The Grollo Group paid AUD 400,000 (USD 256,600) for the village sublease, which AGL had been seeking to divest for at least 18 months.
Under the plans set forth by Grollo, 27 existing homes, a tavern, and other amenities will be refurbished and a total of 500 beds will be created for seasonal staff at the site in Bogong over the next three to four years. Grollo aims to have 200 beds ready at Bogong for seasonal workers for the start of next year’s ski season in mid-June 2024. The plan for Bogong is part of a broader development plan, which sees 450 beds at Mt. Buller, 500 at Bogong Village, and another 650 beds at Mt Hotham. Grollo is planning on sub-letting these beds to resorts on a 10-year lease. Bogong is only 10 miles from Falls Creek Ski Resort, which is owned by Vail Resorts.
In total 1,500 beds for seasonal workers will be part of a broader portfolio of worker’s accommodation around Australia and possibly New Zealand. The Grollo Group is aiming to expand its portfolio to feature in total around 10,000 beds. The building company will hold these beds in a fund that is estimated to be worth AUD 1 billion (USD 642 million). Until now, Grollo Group had funded everything themselves but is now in discussions with potential capital partners including retail and industry super funds.
The Grollo Group has a long-standing history of investments in the ski industry. Aside from Buller Ski Lifts, which operates the 22 ski lifts at Mt Buller Ski Resort, the Grollo Group also owns a Ski & Snowboard School and childcare facility at the resort as well as the luxury Mt Buller Chalet Hotel & Suites and ABOM Hotel among a collection of other on-mountain hospitality venues at Mt. Buller. In addition, Buller Ski Lifts has several retail and rental stores at Mt. Buller and Mansfield, and a property development and maintenance business unit. Grollo Group further has investments in Falls Creek Ski Resort and Mt Hotham Ski Resort and the company purchased the old Mt Hotham airport late last year for AUD 6.5 million. The former airport will also become housing for seasonal workers under this project.
Much like in Northern America, housing seasonal workers has been a major issue for ski resorts and related businesses in Australia in the last few years, and this project should go a long way to alleviating the issue.
