Burleigh Arcade set for demolition to make way for units after being sold to developer Weiya Holdings

A landmark beachfront building that’s stood for decades in this Gold Coast suburb is set for demolition after it was sold to a Sydney developer for an eight-figure sum.

The Burleigh Arcade will be demolished after selling for $18.5 million. Photo: Supplied

LANDMARK oceanfront building the Old Burleigh Arcade has sold to a Sydney property development company for $18.5 million and is to be demolished.

Weiya Holdings intends replacing the near 90-year-old Goodwin Tce structure with a luxury apartment building with a new arcade at its base.

Weiya development manager Wei Wang yesterday said the arcade was an iconic building but it was ‘out of its day’.

“It’s in a great location but the potential of that location is not being realised,” he said.

“There are a number of vacancies — the arcade’s not functional.”

GCThe Old Burleigh Theatre Arcade at 64 Goodwin Terrace in Burleigh Heads has been sold.

Mr Wang said Weiya planned a building of up to 14 levels, depending on council approval, and its apartments would be ‘high end’.

“We don’t want to waste what is a great location.”

Mr Wang said it could take up to 10 months for Weiya to gain development approval.

A start on a new building would depend on market conditions.

“We will have an income stream from the tenants so we can either hold off or go ahead.”

The arcade has project net income of $865,000 a year when fully leased.

The Burleigh Arcade will be demolished after selling for $18.5 million. Photo: Supplied

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Mr Wang said Weiya would look at increasing the existing income through casual vacancies — tenants on one-year or 18 months leases with demolition clauses.

Tenants include Montezuma’s Mexican restaurant, Cold Rock Ice Creamery, Surfing Queensland and Triathlon Australia.

Weiya Holdings is a private company set up in Sydney in 2010 and its projects have included land subdivisions and apartment buildings.

Its activities have spread outside Sydney to Terrigal — where it built oceanfront apartments — Bowral and Brisbane, where it is planning a 350-lot subdivision at Collingwood Park.

New buy the 64 Goodwin Tce Burleigh arcade was put on the market in April via Steven King, of Colliers, and Adam Young, of Black and Young.

The two-level arcade, which has a three-level front, and an adjoining property with a single-level building 1823 Gold Coast Highway were offered via expressions of interest.

The two titles total 18113 sqm.

Mr Wang said that building, on land that was to be partly resumed for the planned light-rail extension, would be demolished quickly.

The Burleigh arcade has the 16-level La Pacifique apartment tower on one side and a Caltex service station on the other side.

The Burleigh Arcade will be demolished after selling for $18.5 million. Photo: Supplied

La Pacifique has been built right to the arcade boundary, something that Mr Wang said might require the new building to be set back more than usual, hence reducing its footprint.

He said that if the Caltex property was subject to a light-rail resumption, Weiya’s building would become a corner one.

The original arcade building was opened in 1930 by William Fradgley as the De-Luxe theatre and dance hall.

A Western Electric sound plant was installed in 1931 to play motion pictures.

The De-Luxe had large sections of its roof ripped off in a 1954 cyclone but was later rebuilt and a cinema operated until June 1966.

It was destroyed by a cyclone in the late 50s and rebuilt, with a cinema operating until June 1966.

The building, after sitting derelict for a few years, was converted to retail and office use in the 1970s.

The property, for many years owned by C & J Sinclair Holdings, moved to Permarjul Pty Ltd, owned by Martyn and Peri Frangos, in 1998.

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Sale sparks buyer interest

THE move to sell the ocean-front Old Burleigh Theatre Arcade prompted an absolute wave of buyer interest, says Colliers International Gold Coast director Steven King.

He said yesterday the marketing campaign drew 153 inquiries.

Many of them were from offshore, including from South Africa, New Zealand, Singapore and China.

“A number of what you might call marquee groups registered their interest.

“They were not considered because the prices and terms they were offering did not suit.

“The seller wanted a clean, short-term contract.”

Mr King, who marketed the property with Black and Young’s Adam Young, said three of the contenders were offering money in the same range the eventual buyer.

Weiyu Holdings is paying $18.5 million and its deal settles next month.

“Their terms and the quick settlement got them across the line,” said Mr King.

Black and Young’s Mr Young said the contest for the arcade was ‘fiercely contested’.

“The seller chose the eventual winner because its offer was very transparent and the principal (Wei Wang) was a real gentleman to deal with.”