Gold Coast development: Gemlife on verge of $2bn business deal
An over-50s resort business that has blossomed after a fledgling start on the Gold Coast 40 years ago could be poised to become one of the country’s biggest property plays of 2022.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
An over-50s resort business that has blossomed after a fledgling start on the Gold Coast 40 years ago could be poised to become one of the country’s biggest property plays of 2022.
A deal is in the wind that could value the GemLife business, which had its genesis in a one-project venture by building industry figure Peter Puljich, at well north of $2bn.
The burgeoning land-lease operation, a joint venture between the Puljich family and Singapore’s Thakral family, was put on the radar of major investment groups earlier this year.
Moves were initiated to bring in an outside investor to help fund new investment by GemLife, which is in the process of building a Nerang headquarters.
Sydney-based investment banking group the Highbury Partnership was called in to manage the exercise and apparently has been deluged with inquiry from far and wide.
Things have rolled on quite quickly since then, with indications there are “players” who would like more than a slice of the over-50s resort operator – in other words, the whole “pie”.
Lifestyle resorts have been hitting a sweetspot with investment groups and among those mooted to be showing interest in GemLife are a Dutch pension group and a major Australian superannuation fund.
The move by GemLife to test the market has come on the heels of the Puljich family deciding it will roll its original business, Living Gems, into GemLife.
The move will create a business with more than 11,000 homes under its umbrella and spread across Queensland, northern NSW and Victoria.
The GemLife business formula is to create what it calls “dynamic and innovative” premium over-50s lifestyle resorts.
Those resorts can include such resident amenities as indoor and lawn bowls, a gymnasium, indoor pool, and even pickleball.
The masterplanned resorts are built under a system by which residents buy their homes from developer Gemlife but pay land-lease fees on their lots.
The group’s flagship venture is underway on the Gold Coast, in the shape of community with more than 400 homes on a near $30m site at The Heights estate at Pimpama.
The Croatian-born Peter, now 74, stepped into the retirement village game by converting caravan parks into over-50s havens.
He’s the former operator of a bricklaying and plastering business who came to the Gold Coast in 1974 and worked on towers such as Aquarius, Peninsula, Beachcomber, Imperial Surf and High Surf.
Peter’s forays also included building a couple of luxury homes, with a riverfront one at Sorrento completed in 1997 and marketed at more than $6m.
The 2200 sqm giant, next to the Bartinon mansion, came with seven spas and spa baths.
The Thakral GemLife venture with the Puljich family began operating in 2015, with baby-boomers in its sights.
Two of Peter’s sons, Adrian as director and CEO and Vlad as chief operating office, head the business.
It remains to be seen whether, should the whole GemLife operation is sold, they will stay at the helm.
‘Need more towers inland’: What people really think of tram tower
A new unit tower planned for a Palm Beach site has got a mixed reaction from Gold Coasters who have called for more high-rises to be built inland.
The Bulletin last week revealed developer Paul Spina had filed plans with the Gold Coast City Council to build the unnamed eight-storey tower on a 1237sq m site on the Gold Coast Highway between 23rd and 25th avenues.
It will have 41 two and three-bedroom units as well as charging ports for electric cars.
Bulletin readers have had a mixed reaction.
Nathan wrote: “Multi million dollar apartments has nothing to do with alleviating property shortages.”
Mitch wrote: “It’d be nice to get some of these towers more inland, where we need affordable living areas.”
Gerard wrote: “YawnFest”.
FIRST LOOK AT PALM BEACH TOWER
A new unit tower is planned for a Palm Beach site on the future light rail route, just 50 metres from the beach.
Developer Paul Spina has filed plans with the Gold Coast City Council to build the unnamed eight-storey tower on a 1237sq m site on the Gold Coast Highway between 23rd and 25th avenues.
It will have 41 two and three-bedroom units as well as charging ports for electric cars.
CBRE residential sales director Nicholas Clydsdale, who is marketing the project, said the demand for property on the future tram route and southern Gold Coast continued to outstrip supply.
“The current available residences in Palm Beach aren’t meeting the huge demand from people wanting to live in the beachside suburb because they are only accessible to a small percentage of the population,” he said.
“This development enjoys a location that is quintessential north Palm Beach that meets demand for high-quality apartments with modern amenity.
“It has been designed to appeal to the local owner-occupier market with a diversity of residences including one, two, and three-bedroom apartments, all within a boutique beachside building.
“In addition, Stage 4 of the light rail network is in the pipeline for Palm Beach, which will offer residents supreme convenience and connectivity.”
The project is expected to go to the market as early as July if approved by council.
The Bulletin last week revealed the southern Gold Coast remained the tightest suburbs in the city’s property market.
A new apartment essentials report by property consulting firm Urbis revealed southern suburbs between Mermaid Beach and Coolangatta had their slowest sales quarter in five years, with just 27 sales.
However, the report noted this was because of an extremely limited number of units, with just 67 on the market during the three-month period.
More Coverage
Oil, debt and China: A Trifecta of threats to global recovery
For Citi’s New York-based global economist, Nathan Sheets, the difference between a recovery and global recession are finely balanced.
‘Very suspicious’ claims in disgraced lawyer’s insolvency
Scathing court documents allege trustees for a disgraced Gold Coast lawyer did not properly probe “very suspicious” creditor claims which enabled him to avoid paying his hefty debts. Read the details