The Surfers Paradise site now worth an estimated $30 million
FOR more than 20 years the fate of a lot known as the ‘Sultan’s bombsite’ has been a mystery. But the saga is about to take another turn. And the amount the site is now worth is eye-watering.
Gold Coast
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A GUESSING game that’s been going on for more than two decades over what’s apparently mistakenly known as the Sultan’s bombsite in Surfers Paradise might be about to take another turn.
The L-shaped site, which has frontages to both the oceanfront The Esplanade and Surfers Paradise Boulevard, has been a source of puzzlement since it was picked up by a Brunei Government arm in 1997.
The 7558 sqm site, despite the Australian Government having rules that can include insisting foreign buyers either develop or sell their buys, site sits empty and forlorn.
Previous owners, both Japanese and Australian, have mooted grand hotel and apartment schemes for the land, which in the late 80s was known as the Imperial Wing site.
At one point many years ago the rubber man, Jim Raptis, was mooted to have a deal on the boil to help develop the site.
Six years ago Mayor Tom Tate gave who he believed was the owner a polite prod, hoping to spark some action that would help the city’s heart fire in the wake of the GFC.
No, he wasn’t going down the ‘move it or lose it’ path, but rather was inviting the owner to invest in the city.
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Tom might just as well have banged the mayoral head against a brick wall.
It seems the reply he got indicated that the owner had no intention of undertaking any development of the land in the foreseeable future.
However, the owner did consent to part of the site being used for parking while the light-rail line was being built.
Now the word emanating from within the council halls of power is that Tom is expected to try again by year’s end, perhaps with more than a polite prod.
This time he’s unlikely to be addressing his letter to the Sultan of Brunei.
A media report about his first letter did draw a response — a lawyer’s letter stating the owner was not the Sultan of Brunei but an arm of the Brunei Investment Agency.
At the time the site was held through Dermajaya Properties (Southern Pacific) Sdn Bhd, which paid $15 million for it in 1997.
Four months after the Tate approach, the site was transferred to Sejahtera Two (Australia) at $11.5 million.
Today its rateable value is believed to be $30 million — or double the 1997 purchase price and a tad more than the $29.5 million it cost Japan’s Kyowa Wing to assemble in 1988.
The Foreign Investment Review Board won’t talk about the site.
It says investments are screened on a case-by-case basis and it’s indicated not all investments by foreign buyers may be subject to development deadlines.
Among ‘outs’ for offshore buyers is free-trade agreements — something which Australia has with Brunei.
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