Sunland Group buys resort in Coolangatta for $26 million

Property developer Sunland Group (ASX ) has acquired the popular 3-star Greenmount Resort in Coolangatta on the Gold Coast's southern beaches for $26 million (plus GST), the company said in a regulatory announcement.

The beachside property adjoining Greenmount Highland was bought as a going concern and the deal is expected to be complete by December this year. It will continue to operate as a resort pending future Council planning approvals, the announcement said.

The resort has 151 rooms and is a stone's throw from the Greenmount and Rainbow Bay beaches. It is also close to Coolangatta's retail and restaurant precincts and is 3.7 km to the Gold Coast airport.

"We see great opportunity on the southern Gold Coast, where the surge in urban renewal and investment is accompanied by a collective understanding that preserving the vibrant village atmosphere of these communities is fundamental to their success," said Sahba Abedian, managing director of Sunland.

“Our vision for this landmark site is to conceive an architectural outcome which complements the existing scale, character and beauty of Coolangatta, while contributing to its ongoing renaissance.”

There has been speculation that a new owner could demolish the old resort and create room to build two or three new buildings, adds the Courier Mail.

Sunland said earlier this year it had spent $40 million in site acquisitions through its first half, while reporting a dip in first-half profit to $3.2 million after taxes.