China buyer plans staged redevelopment on CBD site

A BUYER from mainland China with a development “end game” has pounced on a large amalgamated holding in the heart of the Southport CBD.

The properties at 68 and 72 Nerang St and 5-15 Suter St span 8785sq m.

Kevin Carmody from Savills Gold Coast, who negotiated the deal, confirmed the sale but declined to disclose details of the off-market transaction.

Industry sources however said the holding had changed hands for more than $18 million. It has been off-loaded by a Dubai-based investor, who assembled the holding in four deals between 2002 and 2007 for a total of $18.095 million.

Sharaf Investments, linked to Sharafuddin Sharaf – vice chairman of Sharaf Group, one of the United Arab Emirates largest conglomerates – first took it to market in 2011 as a potential highrise site but it failed to sell at the time.

The properties comprise a vacant allotment and three freestanding buildings with a strong holding income of about $1 million a year net from a range of government and commercial tenants.

Mr Carmody said the site was an outstanding investment and future redevelopment opportunity in Southport’s designated Priority Development Area, a zoning that allows a variety of uses and a fasttracked approval process.

“While the end game will be the development of the site, the new owner will be maintaining it as an investment with holding income,” he said.

“They will take their time to create a master plan for the site, to be developed in stages, with the first stage to potentially be for the vacant land at 68 Nerang St.”