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Chinese continue buying spree in Australia with Versace

The Palazzo Versace resort on Queensland’s Gold Coast in Australia has reportedly been sold for A$68.5 million (US$71.6 million) by Sunland Group to two Chinese companies — one in construction and the other in travel with control of at least three other hotels.

The Australian reported that about A$80 million (US$83 million)was initially expected for the Palazzo Versace, which Sunland Group sold because it wants to concentrate on residential property development on the east coast. A portion of the proceeds is supposed to be used to repay about A$27.4 (US$28.6) million of debt on the 200-suite property.

Chinese investors are buying Australian hotels and resorts as a result of the boom in leisure arrivals from China. Data shows Chinese arrivals rose a record 19.4% in June and 16.7% for the financial year, to 583,200, becoming Australia’s third-largest inbound market.

In April, Chinese cable TV magnate William Han paid about A$12 million (US$12.5 million) for Lindeman Island. Han is creating a two-year redevelopment plan for the island, which includes using his cable TV golf channel to market the property to Chinese holidaymakers.

Another Chinese group, Nanjing-based Fullshare, is also developing Whisper Bay resort near Airlie Beach, which is being billed as an upscale resort.

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