Experience Co Ltd Targets Growth With SA Acquisition and $4M Reef Grant
Experience Co targets dual growth play across adventure tourism portfolio
Experience Co Limited (ASX: EXP) has announced two growth initiatives spanning both its Treetops Adventure and Reef Unlimited business units, signalling a measured expansion across the adventure tourism group’s core verticals.
The first is a $1.25 million acquisition of West Beach Adventure in South Australia. The second is a $4 million Queensland Government grant toward construction of a new reef cruise vessel, Reef Magic IV.
Both moves point to disciplined, capital-light expansion. One extends the group’s geographic footprint on land, while the other lifts capacity on the Great Barrier Reef.
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Treetops Adventure enters South Australia with West Beach acquisition
EXP has acquired West Beach Adventure, described as one of South Australia’s premier aerial adventure destinations. The park will sit within the Group’s Treetops Adventure business unit and marks the first time this business unit has entered South Australia.
The site is located within the 135-hectare West Beach Parks tourism precinct and is positioned as an “adventure mega hub”, sitting adjacent to a major skate and BMX park, accommodation and golf facilities.
Key facts on the acquisition include:
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Purchase price: $1.25 million
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Pro-forma EBITDA: ~$450,000
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Annual visitors: over 20,000
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Location: within the 135-hectare West Beach Parks precinct
For investors, this is a bolt-on that extends the Treetops geographic reach into a new state while contributing near-term earnings.
$4 million grant powers Reef Magic IV vessel build
EXP entity Reef Magic Cruises has obtained a $4 million grant from the Queensland Government’s Tourism Icons Investment Fund programme for the construction of Reef Magic IV.
The vessel will be designed and constructed in Brisbane by the Aus Ships Group over approximately 18 months, ahead of a planned launch in December 2027. It will service the Group’s pontoon, Remoora, off Moore Reef departing from Cairns.
Once built, the vessel will carry 385 persons, an increase of roughly 25% on current vessel capacity, and will include a new premium class for 28 passengers. The vessel will measure 32 metres in length and incorporate an active ride control system to support passenger comfort.
The estimated total cost through to launch is approximately $10.6 million, funded via the Group’s debt facility, the Queensland Government grant, and proceeds from the disposal of the existing vessel following delivery of the new vessel. After the grant contribution and estimated disposal proceeds, the net project cost to EXP is estimated at approximately $4.7 million.
| Metric | Detail | Investor Impact |
|---|---|---|
| Total estimated cost | ~$10.6 million | Full project outlay through to launch |
| Government grant | $4 million | Reduces direct capital required from the Group |
| Disposal proceeds | Sale of existing vessel | Further offsets project cost post-delivery |
| Net cost to EXP | ~$4.7 million | Modest net capital exposure for a major asset |
| Capacity uplift | ~25% (to 385 persons) | Expands revenue ceiling per departure |
John O’Sullivan, CEO
“These projects align with the Group’s focus on expanding our Treetops Adventure and Reef Unlimited business units. We are genuinely excited about the addition of West Beach Adventure and the construction of our new vessel, Reef Magic IV, in partnership with the Queensland Government.”
What adventure tourism investors should understand
EXP operates a two-pillar model. Treetops Adventure runs land-based aerial adventure parks featuring elevated outdoor challenges. Reef Unlimited delivers Great Barrier Reef cruise and pontoon experiences.
Capacity is a central lever in reef tourism. A larger vessel directly raises the number of passengers carried per departure, which in turn lifts the potential revenue ceiling on each trip.
The government grant carries particular significance for shareholders. By contributing $4 million toward an approximately $10.6 million build, the funding reduces the capital EXP must source itself and helps de-risk a sizeable capital expenditure project. Combined with the estimated disposal proceeds, the net cost to the Group falls to around $4.7 million.
The Reef Magic IV vessel build will be funded through a mix of grant support, asset recycling and debt, with the government grant, estimated disposal proceeds from the existing vessel, and the Group’s debt facility together reducing the net capital outlay to approximately $4.7 million.
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Investment significance and timeline ahead
The two initiatives feed directly into EXP’s investment case. The West Beach acquisition delivers geographic expansion for Treetops Adventure, while Reef Magic IV provides capacity-led revenue growth for Reef Unlimited.
The forward timeline involves several stages:
The Wild Bush Luxury divestment completed in May 2026 returned approximately $3.4 million in net proceeds to reduce corporate debt, a balance sheet move that supports the Group’s capacity to fund new capital projects like the Reef Magic IV build.
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Reef Magic IV design and construction in Brisbane (~18 months)
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Planned vessel launch (December 2027)
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Disposal of the existing vessel following delivery of Reef Magic IV
For investors, the structure offers a near-term EBITDA contribution from the acquisition alongside a defined medium-term catalyst from the new vessel. The funding mix of debt, grant and asset disposal keeps the net capital outlay modest while expanding both core business units.
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