Winding up: Sunland Group offloads one of its last remaining property assets for $16.7 million
The sun is edging ever closer to the horizon for commercial and residential developer Sunland Group after the development giant inked a deal worth $16.78 million for one of its last remaining Queensland property assets.
A mystery investor has scooped up the modern retail precinct at Marina Concourse, about five kilometres west of Surfers Paradise on the Gold Coast.
In late 2020, the ASX-listed Sunland Group – headed by founder Soheil Abedian and renowned for the Q1 Tower and Palazzo Versace Hotel – announced it would wind up its operations, prompting a steady selling spree of its assets.
The Marina Concourse Retail Village formed part of an $82 million development by Sunland in a master-planned community in Benowa, featuring two luxury residential towers completed last year.
The retail precinct comprises eight tenancies, including a child care centre, swim school, home builder and Sunland’s Gold Coast offices, returning a net income of $1.07 million per annum plus GST. The sale also included another freehold title: the estate’s marina, with room for up to 100 marina berths.
The property was sold through Kollosche Commercial agents Adam Grbcic and his father Tony Grbcic.
“The sale price represents a yield of 5.5 per cent, which is a positive price result,” said Adam Grbcic.
The expression of interest campaign attracted 168 enquiries from interstate and local investors.
Grbcic said the buyer, a Gold Coast investor with a portfolio of commercial and residential freeholds, was drawn to the centre’s “set and forget” income stream.
“The rights to the marina open up the further potential to build marina berths, a floating restaurant or activate the water with recreational water sports,” he added.
Kollosche Commercial also handled the $45.8 million sale of Sunland’s The Lanes Retail Precinct in Mermaid Waters. The undeveloped retail allotment was bought by Panthera Group last year.
Sunland’s active projects have dwindled down to just a few, including a 44-storey residential tower in Mermaid Beach, The Lanes’ residential waterfront buildings in Mermaid Waters and the boutique Montaine Residences development in Sydney’s Mt Annan. All are expected to wind up by April next year.
In a September note to shareholders, the developer revealed that by June 2023, it expected to have no active projects or business assets remaining.
While Sunland Group will cease, Abedian will continue working in the sector, albeit in a private capacity.
