Beachside resort with resident penguin colony to fetch $5m-plus

Bicheno's Diamond Island Resort occupies 2.44 hectares of coastland at Redbill Beach, which is famous for the penguin colony that nests along its shoreline every night.

It has 26 one, two and three-bedroom villas and is set to fetch between $5 million and $6 million.

Elders' Charles Black said interest in the property, which has been owned by a Queensland-based family, had been "solid".

"We're dealing with a couple of parties now at the pointy end of the campaign," Mr Black said.

"It's probably more than likely it'll sell to another mainland operative."

The resort envelopes a circa-1856 home that was built by John Allen, one of Bicheno's first free settlers.

The original homestead remains as the centrepiece of the resort, and guests have previously been permitted to view the original 1856-built staircase on request.

Mr Black said the block had plenty of scope for future expansion.

"There's a lot of surplus, good land," Mr Black said.

"We've marketed it as a development potential upside block, obviously subject to council approval and rezoning.

"But all that area on either side is zoned 'special purpose - North Bicheno Future Urban', so it's clearly been earmarked by council for future residential development.

"There's scope to increase the size of the resort and scope down the track for future residential subdivision."