Macau casino king Loi closes in on EG Funds' Circle on Cavill
Acquisitive investor and Macau casino boss Loi Keong Kuong is on his way to buying another Gold Coast property, with the businessman close to finalising his purchase of EG Funds Management’s retail centre, Circle on Cavill, for about $65 million.
EG previously bought the centre, which is right in the heart of the Gold Coast retail thoroughfare, from the receivers for failed property developer Octaviar, formerly MFS, for about $40 million in 2011.
The group has spent more than $13 million in upgrades and fitout works since buying it.
It is understood Mr Loi, the chairman of Rio Hotel & Casino, and EG are in final negotiations.
The 12,364-square-metre Circle on Cavill in Surfers Paradise is anchored by Woolworths. It also includes national tenants Hurricanes Grill, Poke California, San Churro Chocolateria, Holey Moley mini-golf and Strike Bowling.
The property is adjacent to the light rail and is next to Cavill Avenue Station.
Exercising a growing retail asset stranglehold in the precinct, Mr Loi also owns another shopping centre nearby, Soul Boardwalk, which sits at the base of the $850 million Soul tower. He paid about $90 million for the Surfers Paradise asset last year.
Shaping up to be an ardent fan of the Gold Coast, Mr Loi followed that purchase with the bailout of Chinese developer Forise and its troubled $1.2 billion apartment project Spirit in Surfers Paradise earlier this year. He struck that deal with consortium partners that included former Jewel Gold Coast developer Ridong’s boss Riyu Li.
Mr Loi’s investment resumé extends beyond the Gold Coast, with an office building in Elizabeth Street in Sydney and ExxonMobil’s headquarters in Melbourne’s Southbank.
There has been a steady rise in investors from Macau, after the wave of mainland Chinese investors who dominated the commercial property scene between 2012 to 2017.
These Asian buyers, like those from the sophisticated markets of Hong Kong, Malaysia and Singapore, take a long-term strategic approach to buying assets. Previously, they focused on markets like London but were now keen on Australia.
A recent study by Colliers International showed investor appetite from Vietnam was also on the rise.
JLL’s Jacob Swan and Sam Hatcher and McVay Real Estate’s Dan McVay and Sam McVay marketed Circle on Cavill but declined to comment.
EG Funds Management also declined to comment.
