Chinese investors eyeing up Sunland's $60 million-plus Palazzo Versace on Gold Coast

Sunland’s flagship Palazzo Versace hotel has received considerable offshore buying interest since its marketing began in April this year.

A Chinese group is in due diligence considering its acquisition of the luxury Gold Coast hotel.

The market is tipping $60 million plus for the Palazzo Versace hotel, which was the world’s first fashion house-branded hotel when launched in 2000.

It recently underwent a multimillion-dollar revitalisation in the last 18 months, and has three restaurants, a marina, 200 rooms, a ballroom, shops and other facilities.

Managing director Sahba Abedian confirmed Sunland was in talks with a single party hoping to establish a presence in the Australian market.

Property Observer reported on the listing back in April this year, when the hotel was first expected to notch close $80 million, after a sales campaign was commenced by McVay Real Estate.

According to Jones Lang Laselle hotel data, about $1.1 billion worth of hotels and resorts in Australia have been traded in in the past year, with Asian buyers accounting for more than 90%.

Asian buyers are showing a keen interest in hotels and resorts Down Under due to the economic turbulence in Europe and poor real estate performances elsewhere in the world.

In the past year, Hong Kong group Shangri-La Asia bought Sydney’s Shangri-La hotel and Brisbane’s Holiday Inn. Malaysian group Starhill paid $415 million for Colonial First State’s Marriot hotel portfolio, which consists of three five-star hotels across Sydney, Brisbane and Melbourne.

The Palazzo Versace has been listed by property developer Sunland in order to reinvest in other projects.

The Australian Financial Review reported a sale might be finalised over the next two weeks.