On the QT: Mermaid Waters land buy for bumper price proves a winner for Chinese SKF group

Well-heeled developers, including a billionaire, who were outbid on a juicy slice of waterfront land, have millions of regrets. Here’s why

WELL-heeled developers, including a billionaire, who lost out to a Chinese group in the quest for a juicy slice of waterfront land at Mermaid Waters have every reason to have millions of regrets.

The land, a 1.1ha peninsula that was the long-time home of canal engineer the late Jock McIlwain, was put on the market as the Covid pandemic was biting in mid-2020.

A who’s who of property types stepped forward to run a rule over the Lake Wonderland site, do sums, and make offers.

Some were incredulous when the Chinese group, SKF, appeared out of left field to win the sales contest with a ‘bumper’ $11.18 million offer.

There had been tilts at as low as $5 million, which compared with the property’s rateable value of $3.4 million.

Mermaid Sanctuary

Some of the losers, and other property types, thought the price was excessive and that it would be hard to make a dollar.

Move ahead nearly two years and the land has yielded a gross $24 million – not as one slab but as 12 housing lots and with prices peaking at $3 million.

The sellout estate, tagged Mermaid Sanctuary, has been a big winner for SKF Developing, which is associated with Chao Sun, Kai Zhi, Hongsheng Ye, Boru Yao and Huizi Zhang.

The inclusion of a lucky eight in the $11.18 million purchase price indeed was a lucky ‘Wonderland’ move.

Among those that SKF reportedly headed when it snared the property were multi-billionaire Bob Ell, the man behind plans for the giant Cobaki Lakes estate at Bilambil Heights and Kings Forest in northern NSW.

Also suggested as ‘tilters’ were Singaporean developer Ho Bee, fellow developers Anthony Gordon and Dean Pask, City Pacific founder Phil Sullivan, and the Keylin group‘s Lous Cheung.

Bob Ell

Phil Sullivan

One contender, a Brisbane family, didn’t want to subdivide and flick the whole peninsula but rather keep the head of it for a home.

SKF’s timing with its buy was spot on, with the property market moving on to an adrenaline rush and with waterfront sites hard to find.

The three-sided holding gave it control of a property with 330 metres of water frontage, an architect-designed house in its original condition, a floodlit tennis court with a clubhouse pavilion, a pool, landscaped gardens and a security gate.

The McIlwain house was demolished and a landscaped enclave created, one highlighted by 30-year-old Canary Island date palms and with 24-hour CCTV.

The pay-off for SKF has come in lot prices of from $1.2 million to that $3 million high.

The highest square metre rate was $3000, which matches the rate paid last year for a site of more than 2000 sqm on the Broadbeach Waters riverfront.

The rate pales, however, alongside beachfront prices, which have topped $23,000 a square metre.

Meanwhile, SKF hasn’t been sitting on its investment hands since it embarked on Mermaid Sanctuary.

Mermaid Sanctuary

A linked company, SKF Landholding, spent $5.1 million in March buying 3ha at Upper Coomera from Louise Wolbers, daughter of developer Norm Rix.

It’s undertaking an 83-townhouse project called Baileys Reserve on the land.

Not all of SKF’s Gold Coast forays involve residential projects – it bought a vacant Upper Coomera site last year, peeled off and sold part of it, developed a warehouse-office property on the balance, and found a buyer for that holding at $4.5 million in August.

Gem of an estate buy

ADRIAN Puljich, head of the Gemlife over-50s resort business, and wife Jessica have surfaced as the buyers, for an area record-equalling $22 million, of an estate in the hills behind Byron Bay.

They’re paying the ‘hefty’ figure for lifestyle buy Hercules, a 9ha wellness and training property which includes two homes, conferencing facilities and a film or TV recording studio.

The buy, made in June and which settles pre-Christmas, comes as the Puljichs are selling a giant Carrara home and planning a Broadbeach Waters one.

Farm founders want out of Hedges

TOM and Emma Lane, a couple who seven years ago started eco venture The Farm at Byron Bay, are making a fresh bid to sell an oceanview seat in Mermaid Beach’s Multi-Millionaires’ Row.

The couple, who sold The Farm to two hoteliers for $16 million in 2020, are to auction a sky-home in the Sunland Group’s 272 Hedges Ave tower.

They previously had been chasing a $10 million-plus buyer for their abode in the 44-floor building, in which Sunland’s Soheil Abedian is buying the penthouse.

Chasing Little exit

LITTLE Projects, the Melbourne group behind Broadbeach tower Signature, is out to exit a ‘little’ site in the suburb in the wake of its luxury high-rise plans being rebuffed by the city council.

The group, named after founder and one-time owner Toll Holdings boss Paul Little, last year bought the 506 sqm site, which overlooks state school grounds to the ocean, for $4.3 million.

It’s scouting for a buyer in the wake of securing a site for a 37-floor tower on the northern side of Broadbeach.