Opportunity to claim Grand site
A MORTGAGEE who in August took possession of a property in the heart of Surfers Paradise approved for a 25level hotel with a rooftop drinking venue has put it on the market.
The 270-suite hotel, at 21 Orchid Ave, is intended to have southeast Queensland’s only rooftop pool bar – one with ocean views.
The site, former home of the Alive nightclub, is being sold through an expressions of interest campaign run by Mark Witheriff and James Branch, of Knight Frank.
Company Grand Orchid 21, linked to entities associated with Newcastle lawyer Wayne Roddenby and businessman Robert Taylor, bought the 949 sqm property from investor Elvio Pugliese in late 2015 in an $8.8 million deal that included interstate apartments.
Mr Taylor is a director of 21 Orchid mortgagee Royal National Capital Alliance, which is licensed to operate managed investment schemes.
Mr Branch said the sell-off of what was known as the Grand Gold Coast site was timely given the strengthening tourism numbers and nights.
“Tourism continues to evolve and develop on the Gold Coast and the next phase in the accommodation sector, particularly from the offshore visitor and business market, is boutique CBD hotels with unique offerings,” he said.
“This market sector no longer seeks the same level of facility as hotels built in the 1980s.
“The boutique market is looking for rooftop bars and pools, niche meeting areas and branded dining experiences, and the approval for 21 Orchid Ave is in line with these criteria.”
Mr Witheriff said a twolevel retail building on the site could be refurbished and repositioned to allow a buyer strong holding income while they finalised their building proposals.
A push by Grand Orchid 21 early this year to sell 21 Orchid Ave was unsuccessful and the mortgagee took control of it.
The Gold Coast’s BDA Architecture designed the approved hotel, which is intended to have a 4.5-star rating.
An analyst has forecast it could net $12 million, before tax and depreciation, in its first full year, a forecast based on a 72 per cent occupancy rate.
Expressions of interest in the 21 Orchid site close on November 29.