Two beachfront properties in Surfers Paradise have come to market for the first time in a decade, offering a “compelling” 2.3ha development opportunity.
Paradise Centre and Novotel Surfers Paradise have been listed for sale in one line or individually by Challenger Investment Partners and Elanor Investors through JLL and McVay Real Estate.
An expressions of interest campaign closing October 3 for the 2 Cavill Avenue, Surfers Paradise assets is expected to attract offers north of $350 million, according to industry sources.
The listing follows Alceon and Aktiv paying $142 million for The Strand Coolangatta, a substantial retail asset opposite the beach at the southern end of the Gold Coast.
The Paradise Centre comprises 23,000sq m of retail anchored by a Woolworths. About $40 million was spent upgrading the centre to improve its beachfront exposure and restaurant components in 2022.
Meanwhile, the Novotel is among the Gold Coast’s largest hotel at 408 keys, and includes two multi-level penthouse rooms, conference space, tennis court, spa and pool.
JLL executive director retail Nick Willis said buyers could look at alternative living sector uses for the tower, including student accommodation, build-to-rent, retirement living or co-living.
“The vast majority of this capital has identified opportunity in acquiring retail assets as they provide mixed use development potential,” Willis said.
“However, in the current building environment the ability to deliver these projects is difficult.
“The offering of the Paradise Centre and Novotel provides investors an opportunity to gain immediate exposure without having to take on the development risk.”
Aktiv managing director Olivier Sicouri said this had been the case for its acquisition of The Strand from Vinta Group.
“The Strand in Coolangatta is a unique asset positioned in the heart of an iconic precinct that presented a rare opportunity to acquire an asset of this scale well below replacement cost,” Sicouri said.
He said the asset was in a location expected to grow and gentrify, and one that faced “limited competition risk, due to prohibitively high construction costs”.
Recent sales, such as the Vibe Gold Coast for around $60 million and Sheraton Grand Mirage for almost $200 million, highlighted the depth of domestic and international capital looking at the market, according to agents.
JLL head of retail investments Sam Hatcher said the region always performed well and would be strengthened by the 2032 Brisbane Olympic Games.
“Over the past decade, the Gold Coast has solidified its position as a core investment market, underpinned by robust fundamentals including nation-leading interstate migration, record tourism growth, and strategic infrastructure development,” Hatcher said.
“The region consistently outperforms other Australian tourism destinations and is now seen as a major global city ... [it] is attracting significant local and offshore investment as a result.”
In the past decade median incomes have risen about 28 per cent, according to the Australian Bureau of Statistics, while Cotality data shows housing prices along the corridor have increased by 120 per cent.
