$55M KOORALBYN CONTRACT TERMINATED
A $55m contract for the Kooralbyn Valley Resort has been terminated after the buyer failed to stump up a deposit.
The resort, which is owned by Peter Huang, who is also the founder of Yong Realty, went under contract last month, subject to 30 days’ due diligence so the buyer could get their finances in order. The July 6 deadline passed, with the buyer asking for an extension.
It is the third time a mutually agreed contract for the property, which hit the market in March 2020, has collapsed due to what Mr Huang calls “Covid-19-related issues”. “If it wasn’t for Covid, the resort would have been sold several times over to international buyers,” he said.
“We have had dozens of interested parties and 10 cash offers, but they were low and so unacceptable. We did accept three offers but none of them have been able to get clearance for their funding.
“I’m still confident that someone will come up with it, because it is a selling for a fraction of what it is worth. The entire resort is equivalent to what someone could stump up for a house on Mermaid Beach.”
Fed up with the repeated delays, Mr Huang this week made the decision to terminate the most recent contract so he could start negotiations with other interested parties.
And in a somewhat unorthodox move to help the sale along, he has offered to provide vendor finance to any “genuine” buyer at 5 per cent annual interest payable from the second year as a private lender.
Covering more than 800 acres, with 27 existing lots and 30 buildings, Mr Huang claims that an independent valuation shows the potential for a $500m to $2bn development project to be built on the land, depending on a buyer’s master plan and level of funding.