Melbourne developer Central Equity pulls pin on 56-floor Luxe tower at Surfers Paradise
A MELBOURNE developer has pulled the pin on a mammoth tower project at a popular Gold Coast beach, making way for what could be the biggest development site sale of 2018.
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MELBOURNE’S biggest developer of high-rise apartments has aborted plans for an ‘iconic’ 56-floor tower overlooking the beach in Surfers Paradise and is putting its ready-to-go site on the market.
The move could result in one of the biggest development site sales of 2018.
Central Equity spent around $18 million over a decade assembling a 3259 sqm holding on the corner of Garfield Tce and Frederick St.
It gained approval for Luxe, a debut Gold Coast tower with 486 apartments, some of them serviced suites.
Central Equity had hoped to start work on Luxe last year but has been heavily focused on Melbourne and is putting the Luxe site to tender.
Karl Kutner, a director of the private company, yesterday said that Central had four Melbourne high-rise projects in the pipeline and a 184ha land subdivision that was expected to house 12,000 people.
“These projects are worth more than $3 billion.
“We have also acquired a further high rise development site in the CBD.
“Accordingly, we have decided to reallocate our capital toward the Melbourne market.”
Mr Kutner said Central Equity had worked on the Surfers project for many years and had achieved a development approval that would be hard to replicate.
“It is an excellent opportunity for either an existing operator or someone who wants to enter the Australian market.
“Very few sites so close to the beach are available, especially with
such a valuable approval.”
Mr Kutner said management-rights marketing group Resort Brokers had valued the Luxe rights at more than $22 million, which was a huge bonus for a buyer of the site.
“This bonus can be increased if the number of serviced apartments is increased.”
Central Equity had intended that 184 of Luxe apartments be serviced suites.
Brad Merkur, of Ray White Commercial, yesterday said the position of the Luxe site, along with the approval, made the property a very attractive development proposition.
“This site offers a developer the chance to start marketing promptly and even make a fast start to construction.”
Mr Merkur, who handled the deals which enabled Central Equity to enlarge its initial site, said it would be extremely difficult to assemble a similar site directly across the road from the beach.
He said there had been no sales of comparable southern Surfers sites.
“The only major one has been Chinese group Forise paying $65 million for the former Iluka site, which is on the fringe of the Surfers CBD and overlooks the beach.
“That deal, with no approvals in place, equated to an extremely bullish figure of more than $18,000 a square metre.”
The Luxe site is being sold by expressions of interest, which close on May 31.
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