Chinese property players make moves
ACHINESE group which spent $16m five years ago on a Surfers Paradise tower site discreetly is looking to go half-in, halfout with its investment.
Potential buyers are being sounded out over buying a 50 per cent stake in a full city block overlooking the Nerang River.
Alternatively, the ShengLan Group is willing to talk turkey over an equal-parts joint venture to develop the 5000sqm site, which is on the eastern side of Remembrance Dr, opposite the Isle of Capri bridge.
That development could be a rather big one, with a hotel and more than 500 apartments.
Sheng-Lan, associated with the Sunnyland group, four years ago won a green light to develop towers of 50 and 38 floors.
There’s been no movement since then on the property, which also has frontages to River Tce and Enderley Tce.
Sheng-Lan’s directors all are based in Melbourne, which is also the base of Sunnyland.
At the time of the Surfers buy, Sunnyland was reported as owning a Melbourne office building and to be preparing for projects in Sydney.
The half-measure move over the Gold Coast site comes as some major Chinese investors in the city aren’t doing things by halves – they’re heading for the door lock, stock and barrel.
The exits started with the Forise group selling the site of its Spirit super-tower on the Surfers beachfront to fellow Chinese players - and taking a financial hiding in the process.
In July, the Tandellen group and CCCC International Holding, along with the Aquis camp, completed their retreats from a city block known as the Vomitron site.
It was bought for $36.5m in 2016 and sold in two parcels for $38.3m.
Five weeks ago Chinese state-owned company Hubei United Investment Group sold a twin-tower Mermaid Beach site, bought for $34.1m six years earlier.
It was approved for a ‘healthy’ twin-tower development called Elegance but the sale result is neither elegant or healthy – the land has sold for a reported $22m.
The Sheng-Lan ambition for its site is to deliver 280 hotel suites and 508 apartments in towers that twist in shape as they rise and stand out on the skyline.
The project, dubbed River Terrace, would include finedining restaurants, shops and a 36-degree infinity pool on level two recreation area.
Sheng-Lan’s plan is a step up from earlier proposals for the land.
The property was assembled in 2006 by a company linked to Tom Manassa at a cost of $13.9m and a 29-level tower, Reve, was proposed.
Receivers moved on the Manasa company in 2008 and the land was put on the market.
A Korean group put it under contract, re-worked the approval to allow a $170m tower with 289 units, and then in 2010 failed to settle the purchase.
A company linked to mining industry figure Brian Flannery bought the 10-title block from receivers for $6.38m in March 2011.
The agent who sold the holding to Sheng-Lan in 2016, Ray White Commercial’s Brad Merkur, is in the fray this time around. He and colleague Scott Wells are seeking expressions of interest from people who want to go halves in River Terrace or its site.