FACELIFT FOR GRAND CHANCELLOR AFTER $80M SALE
26 May 2016, Written by Karen Rickert
THE Hotel Grand Chancellor is poised for a major a makeover following the $80 million sale of the property to offshore investors.
The Singapore-based Hotel Grand Central has sold the 408-room Surfers Paradise property to fund manager Challenger in separate transactions comprising $77.41 million for the land and $2.59 million for the business.
The sale represents a significant return on investment for the Singapore-listed hotelier, which acquired Hotel Grand Chancellor Surfers Paradise for $47 million in 2010 and later spent $8.75 million on refurbishments.
Challenger also manages the adjoining Paradise Centre retail precinct along Cavill Avenue on behalf of the same offshore investor.
The latest deal builds on rising interest in the Gold Coast hotel market with a number of major players said to have run the ruler over the Grand Chancellor.
The off-market deal has reportedly been in the works since March, with international hotel groups such as IHG, Accor and Sheraton showing interest.
McVay Real Estate agents Dan and Sam McVay negotiated the sale, capping off a rush of hotel sales across the Gold Coast for the boutique firm.
McVay brokered the sale of Greenmount Resort in Coolangatta to Sunland Group (ASX:SDG) for $26 million in March, as well as Surfers Paradise Marriott Resort and Spa to Marriott Vacation Club for $85 million last year.
The Hotel Grand Chancellor Surfers Paradise sale is expected to be finalised on June 28, subject to approval from the Foreign Investment Review Board.