Gold Coast property: Rebirth plan for Ashmore City revealed

ASHMORE City retail centre is earmarked for a transformation that may boast a vertical retirement village.

Ashmore City is earmarked for a transformation that may include a retirement village.

ASHMORE City retail centre is earmarked for a transformation that may boast a vertical retirement village.

The makeover is planned by new owners who want the centre to be a community focal point.

The owners, a syndicate of Singaporean and Malaysian investors, recently settled the $34.3 million purchase of the 35-year-old centre, which was sold by receivers.

Alex Ng, who heads the syndicate, said steps had been taken to “lift’’ what has been a neglected asset and to lease vacant tenancies.

Initially, up to $2 million will be spent — on new lighting and a repainting program.

“We think we can return the original rustic charm to the main centre,’’ Mr Ng said.

“We are looking at preparing a masterplan for development of other parts of the 2.6ha site.

“One idea is a vertical retirement village, and we are also considering a swim school and a childcare centre.”

Ashmore City Shopping Centre.

The Ng syndicate has bought the centre, which was developed by Norm Rix and has the Big Four banks on its tenant list, on a passing yield of more than 8 per cent.

It was sold by receivers to an Australian Retail Income Opportunity Fund, which acquired it for $37 million in 2013.

The 39-year-old Mr Ng, who gained a university degree in Adelaide and later spent 10 years in Shanghai, said his syndicate looked at the centre before the receivership but decided that the $40 million asking price did not stack up.

“When it came back to market we undertook due diligence and liked the location and the bones of the centre,’’ he said. “We have a lot of faith in the tenants; they stuck by the centre while it was deteriorating.

“The centre was close to a tipping point and the tenants easily could have walked.”

Mr Ng said returning the centre to health would require more than a lick of paint.

“That’s cosmetic. We will work to make Ashmore City a focal point and a gathering place for the surrounding area’s community.”

Mr Ng said First Asset Management’s Angelo Efstathis has been appointed manager of Ashmore City.

“We easily could have called in one of the big management groups but no, we wanted a local.

“We are also helping owners of our small businesses to enter the digital age in terms of marketing.

“We are starting a web-based portal that will be at the leading edge in terms of marketing and design and it will help those who don’t have the necessary resources.”

Mr Ng also heads a syndicate that, in late 2015, outlaid $70 million to acquire the Crowne Plaza Hotel in Surfers Paradise.