One of the world’s richest people has decided to sell one of the Gold Coast’s largest hospitality spaces due to a need to “recycle his capital”.
Malaysia’s richest man for several decades and believed to have a net worth of US$11.5 billion, 100-year-old Robert Kuok’s Shangri-La Hotel Group purchased Vibe Hotel Gold Coast and Surfers Pavilion for around $46 million in 2016.
The business magnate could now pocket an extra $4 million at least on the property after it hit the market on July 2 with an expected sale price of $50 million or more.
That price would make it the second highest hotel sale in the Queensland behind the Sheraton Grand Mirage Resort, also on the Coast, at Main Beach, that sold in June last year for $192 million.
The Surfers Paradise freehold land parcel of almost 4700sq m comprises the 22-storey, 199-key Vibe Hotel as well as the Surfers Pavilion retail, events and dining area, and a marina.
The site offers almost 90m of direct river frontage.
As was the case for its 2016 sale by joint vendors Allan Vidor’s Toga Group and Greg Shand’s Barana Group, the major hospitality site is being offered with vacant possession.
Sales agent JLL Hotels and Hospitality Group believes that will give investor buyers plenty of options on operating models.
But the site should also appeal to developers, according to JLL Brisbane capital markets director, Tim Jones.
“The Vibe Hotel Gold Coast and Surfers Pavilion will be attractive to developers noting the in-place income and with the existing improvements split into two notable and distinct uses, a two-stage development is very much viable,” Jones said
He said waterfront development sites across the Gold Coast have attracted a lot of interest during the past 12 months.
JLL Hotels executive vice president Adam Bury said interest in the property was expected from local, interstate and international purchasers “and it is expected that a number of active Gold Coast developers may also explore the opportunity”.
These expectations weren’t misplaced either, Bury told The Urban Developer, with “loads” of interest received from a range of potential buyers within a few hours of the site being listed.
Vibe Hotel Gold Coast and Surfers Pavilion is being marketed as an expressions-of-interest sale with offers open until Wednesday, August 7.
