Sale of the Sheraton Mirage, developed by 1980s entrepreneur Christopher Skase, could yield about $120m. Source: Supplied
The cashed-up mainland Chinese owners of the Gold Coast’s five-star Palazzo Versace resort are believed to be looking to bulk up their fledgling southeast Queensland hotel portfolio with the acquisition of the Sheraton Mirage Resort and Spa across the road for about $120 million.
The sprawling 296-room Sheraton Mirage Resort property, developed by the notorious entrepreneur Christopher Skase in the 1980s, was put up for sale by its Indian owners, Pearls Australasia, last year with high hopes of fetching at least $170m.
The value of the Sheraton Mirage Resort property lies in its extensive beachfront land and proximity to the Palazzo Versace.
The Palazzo Versace’s owners Simon and Linda Zuo, who control the Dong Run Group are presently in China could not be reached for comment.
But several Brisbane sources said the pair, who bought the Palazzo Versace in 2012 for $68.5m, had been negotiating to purchase the Sheraton Mirage Resort and Spa for several months.
However, the purchase was denied by their Australian spokesman. “It may have been a topic of discussion a few months ago,” he said.
Other sources said the resort is still in play with several parties assessing its viability as an acquisition.
The Zuo’s are clearly on an acquisition spree, recently buying a multi-million dollar residential property on the Gold Coast at Kookaburra Court, Sorrento.
Mr Zuo who runs China’s answer to David Jones department stores as well as real estate ventures, hotels and construction firms, spends most of his time in Nanchang, the capital of China’s Jiangzi province.
An international hotelier and restaurateur from Singapore recently told The Weekend Australian that Chinese investors are intent on investing outside of the Mainland and will pay above the asking price for Australian properties because they take a long-term, 25-year view investment view. They also like investing here because of the relative stability of the Australian economy, he said.
The 200-suite Palazzo Versace was developed by Queensland group Sunland in 2000 — as one of the world’s first hotels branded with an international fashion designer.
The agents handling the Sheraton Mirage Hotel & Spa sale, Dan McVay of McVay Real Estate, has denied that any deal was taking place, and Knight Frank’s Mark Witheriff, has declined to comment.
