WE'RE DEVELOPERS NOT HOTELIERS SAYS SUNLAND

WE'RE DEVELOPERS NOT HOTELIERS SAYS SUNLAND

PALAZZO Versace, Gold Coast’s hotel of choice for visiting celebrities, has been put on the market for $80 million.

Sunland Group (ASX:SDG), based on the Gold Coast, confirmed in a statement today it was looking to offload the luxury property through an expressions of interest campaign.

In explaining its reason for selling the property, Sunland says it is a development company rather than an hotelier.

“The intention to sell the luxury hotel is based on the group’s strategy to focus on its core business of property development in Australia,” says company secretary Grant Harrison.

The resort, located on the Southport Spit with Broadwater frontage, opened in 2000 as the world’s first fashion-branded luxury hotel. It has hosted an array of celebrities including the Rolling Stones and Paris Hilton.

Sheik Maktoum bin Rashed al-Maktoum, the former leader of the United Arab Emirates, died while staying in the hotel in 2006.

Sunland acquired 100 per cent ownership of the property six months ago after a deal with a Middle Eastern partner who previously owned a 49 per cent stake.

McVay Real Estate will handle the sale, with expressions of interest open until early June.

Investors from Asia have proved they are interested in acquiring luxury Gold Coast resorts - New Delhi-based Pearls Global bought Sheraton Mirage in early 2010 for a reported $60 million.

Sunland purchased Mariner’s Cove in September for $13 million and also has a development site in the Brisbane CBD.

It is understood Sunland plans to use the cash from the sale of Palazzo Versace to pursue a new ‘iconic’ property venture.

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