Schwartz moves into Paradise Resort for $43m
Renowned investor Jerry Schwartz has acquired the Paradise Resort for $43m, a significant discount after its owner Ralan Group, went into administration in August.
The 3.5 star Paradise Resort is located at 114 - 122 Ferny Avenue, Surfers Paradise and consists of a 360 room low rise family friendly resort on a prime site.
The property is forecast to generate $4.4m in net profit on an occupancy of 68%. On this basis, the property is forecast to generate a passing yield of circa 10.2%.
The 2.49ha site has Masterplan approval for a four tower mixed use development yielding 2,477 bedrooms and 7,080 sqm of commercial/retail space with a GFA of 137,833 sqm. A Permit for Stage 1 has been issued permitting the development of 222 apartments on cleared part of the existing site.
The vendor Ralan Group has intended to proceed with the development of Stage before being placed into administration. Ralan had paid $75, for the site in 2015.
The sale campaign was conducted by McVay Real Estate.