Bruno Marveggio sells Glenelg waterfront site for planned luxury hotel to Chinese investor for $11.6m

A $110 million, five-star hotel for Glenelg will still go ahead under new ownership after its embattled developer sold the site to a Chinese investor.

The 146-room Langham Adelaide will feature an infinity pool, function centre, shops and fine-dining restaurant. Picture: Hassell

• $110m hotel to replace Glenelg’s Comfort Inn
• Luxury hotel is approved, despite concerns
• Hotel is delayed for up to six months
• … and for another six months

The site of a proposed five-star hotel in Glenelg has been sold for $11.6 million to a Chinese businessman who intends pressing ahead with the delayed project, according to his lawyer.

Former Adelaide United shareholder Bruno Marveggio has offloaded the Comfort Motor Inn site on Adelphi Tce to clear debts related to failed construction company Coombs Barei Constructions, which collapsed in October 2017 with debts of $6.5 million.

Mr Marveggio had intended to develop the site with a $110 million 150-room Langham-brand hotel and apartment building which has been beset with delays since it was approved in June 2016.

Chinese-born businessman Fushuang Zheng, of the ZFS Group, bought the 5000 sqm property on the Glenelg foreshore last month.

An architect’s impression of the Langham Adelaide hotel at Glenelg, which will replace the existing Comfort Motor Inn on Adelphi Tce, Glenelg. Picture: Hassell

The Comfort Inn site in Glenelg

Sean Keenihan, chairman of Norman Waterhouse and Mr Zheng’s lawyer, said his client intended to press ahead with the hotel proposal.

“It’s such an attractive site he is very excited about the scheme that has been approved, and that is the primary focus, to get on advancing that,” Mr Keenihan, who is also chairman of the SA Tourism Commission, said.

“From Mr Zheng’s perspective he was looking to further diversify, he loves South Australia very much and that site and what it offers is obviously very exciting.”

Sonia Lefevre, spokeswoman for the project’s management company Lustro Hotel Group, said a builder — who she would not reveal — has been appointed for the 12-storey building.

She said demolition is expected within the first quarter of 2019 but said that the existing hotel will still be taking bookings until the end of March.

The hotel and apartment building, which will include a 200-person ballroom, was approved in September 2016 and had originally been slated for completion in mid-2019.

Bruno Marveggio has sold the site of the Comfort Motor Inn at Glenelg to Chinese investor Fushuang Zheng, who will build a $110 million hotel and apartment complex.

Ms Lefevre said development approval was extended until mid-2019 and that construction of the property would take at least 18 months.

She said representatives from the Langham Group were in Adelaide last week to discuss the project.

Mr Keenihan said Adelaide will see more Chinese investors looking to diversify beyond a “tough” residential market and into tourism ventures.

“We are seeing a new trend line in terms of Chinese investment,” he said. “We have got no shortage of people coming in (to visit) but we need more and more (accommodation).”

The Advertiser reported last month that Chinese property developer and investor Ben Tsui had bought the Wirrina Resort, near Yankalilla, with the aim of luring Chinese golfers.