Sydney-based Ralan Group has acquired the 380-room Zagame’s Paradise Resort in Surfers Paradise for about $75 million from the Zagame and Pellicano families.
CEO William O’Dwyer said Ralan intends to develop more than 1500 apartments worth more than $1 billion on the site during the next five years. Development is likely to start later this year on the 2.49ha Budds Beach site.
Mr O’Dwyer said the Paradise Resort project would be developed in keeping with an approved masterplan that allowed four towers with up to 1650 apartments as well as commercial space. Mr O’Dwyer maintains Ralan could build the first two of four towers without having to impact on the existing resort.
Dan and Sam McVay, of McVay Real Estate, brokered the deal.
The Zagame and Pellicano families bought the resort in 2010 for $38.9 million and spent $8 million on refurbishment.
The family-orientated resort has four-star facilities including an ice-skating rink, giant Z4K Waterpark, Zone 4 Kids club, lagoon pool and spa, bistro, cafe and bar.
Meanwhile Singapore’s Cockpit Hotels is selling the 4½-star Crowne Plaza and Gold Tower property, that comes with an attached development site for a 46-storey apartment tower with 234 units. The offering is expected to fetch $60 million.
The Crowne Plaza hotel has 269 guest rooms and suites and associated function and banquet rooms, as well as a tavern. The Intercontinental Hotel Group’s management agreement runs until the end of 2022, but vacant possession is available on the sale.
ANZ and Brookfield Multiplex that acquired the $700 million Hilton Surfers Paradise Hotel and Residences during the global financial crisis has put the complex up for sale. It includes the 169-room Hilton and 224 private residences spread between two towers. Property industry sources said the hotel and management rights could separately attract offers of more than $60 million.