Whispers growing louder on Chateau
THERE are suggestions floating along the beachfront that be an attempt to amalgamate the Chateau Beachside tower, which overlooks the ocean in Surfers Paradise, might be brewing.
The 46-year-old tower sits on a juicy 4047sqm site on The Esplanade, only a block from Cavill Mall.
The property, which also fronts Elkhorn Ave, has drawn the attention of ambitious developers previously.
The Chateau was built by Cairns group Watkins Consolidated in 1972 and its 19 floors house 108 apartments, many dual-key.
By far the bulk of those apartments are in a holiday-letting pool and any would-be buyer of the property would have to secure the management rights.
The Chateau’s value as a development site has come into new focus as a result of other big-ticket activity along the Surfers beachfront The major site deal has involved the land south of Cavill Mall that previously housed the Iluka resort, a tower that, like the Chateau, was built by Watkins Consolidated.
Hong Kong’s Forise group bought the land for $65 million and has embarked on an 89-level tower, Spirit, which will be capped by a $41 million penthouse.
North of the Chateau, highrise pacesetter Harry Triguboff has paid $58 million for the 22-level International Beach Resort (formerly the Apollo), razed the building, and has started work on Ocean, a 73-level building with more than 700 serviced and residential apartments.
At the very northern end of The Esplanade, an amalgamation exercise has seen Singapore’s Banyan Tree group spend around $50 million assembling a site that includes the Bahia high-rise.
Nearby, on Main Beach Pde, the Pacific Point tower has been amalgamated, along with two adjoining villas, for around $24 million by Hong Kong billionaire Tony Fung.
He’s gained approval for a six-star hotel and has the site on the market.
Possible amalgamation target the Chateau truly is one of the ‘old school’ of Gold Coast high rises – it comes with something that land values have ruled out in today’s towers, a tennis court.
The building, which many years ago was run in hotel fashion by the Quality Inn group, also has a restaurant and bar. Units were selling for less than $50,000 when the Chateau was built.
The most paid by any of the existing owners is $702,000 for a spot on the 14th floor, with the bulk of owners ‘in’ at $250,000 or less.
Among parties with which any would-be Chateau buyer would have to negotiate is Dr John Knight’s Medi-Aid Centre Foundation, which owns nearly 200 apartments in various Surfers Paradise buildings. It spent $243,000 in 2001 on two Chateau units.
And, if a mooted amalgamation is attempted and is successful, the big question is what the prime site might be worth to a developer.
Based on the $1513 a square paid along the street by HighRise Harry, it could top $60 million.