Backpack resort nets $3.9m bid

A BACKPACKERS resort at Surfers Paradise has sold for $3.9 million at auction to a Sydney investor.

The Sleeping Inn Backpackers Resort at 26-28 Peninsular Drive was sold by Citygate International Pty Ltd, linked to Matthew and Sean Heanen, which held the property since 2007.

Ray White Commercial Gold Coast’s Jared Johnson, who marketed the property with colleague Michael Willems, said it attracted strong interest from investors.

The tenant has a lease until November, 2025 with three five-year options. However, there is a break provision in the lease, which allows for redevelopment of the 1061sq m block.

The property, which is in an area with no height limits, returns net annual income of $450,882 to the owner.