Taiwanese billionaires set to buy Surfers Paradise icons in $370m mega deal

Forest Endeavour is in talks to buy Surfers Paradise icon the Paradise Centre and the attached Novotel.

One of the biggest landmarks in Surfers Paradise is close to selling to a family of billionaires hailing from Taiwan, continuing the march of Asian investment into the glitter strip.

In one of the biggest plays ever seen in the tourism hot spot, Asian investment group Forest Endeavour is looking to expand its retail and hospitality holdings in Queensland with the $370m purchase of the Paradise Centre and the Novotel hotel on top.

The properties form a cornerstone precinct in the city, with a rising local population adding to the custom generated by tourists. Buying the property would add to the Lin family’s empire which includes Helensvale Homeworld and an industrial site on the Gold Coast it picked up from Dexus.

The company, which is connected to the Shayher Group, albeit with separate ownership, is targeting the combined property opposite the famed Surfers Paradise Beach, which draws up to 14 million visitors a year. It sports more than 220m of direct frontage to the Cavill Avenue pedestrian mall, with substantial opportunities for a value-add play in coming years.

Real estate agencies JLL and McVay Real Estate are handling the sale for owners Challenger Life Company and Abu Dhabi Investment Corporation but they did not comment.

The property companies took full control of the site in 2016 with the purchase of the Hotel Grand Chancellor Surfers Paradise for $80m. They had owned the adjoining Paradise Centre on Cavill Avenue after taking control of it out of the Centro empire.

They had toyed with selling the retail property in 2015 with hopes of getting about $240m.

But by taking control of the entire site, they have reaped the benefit of boosting the retail space as well as making better use of the hotel areas by installing Accor as manager.

About three-quarters of the value of the complex is derived from the retail element of the property.

The deal shows how the Gold Coast has locked in its position in the past decade as a core investment market, underpinned by robust fundamentals including high interstate migration, record tourism growth, and strategic infrastructure development.

The centre already captures a hefty share of the tourism customer base and this could grow ahead of the Brisbane Olympics in 2032.

The property comprises 23,000sq m of retail space anchored by Woolworths, alongside entertainment and hospitality venues, including the world’s largest Timezone, The Sporting Globe, and Surfers Paradise Tavern.

It also sports a line-up of national retailers such as Zone Bowling, Starbucks, Grill’d and Australia’s first Wendy’s concept store from the US. The vendors had invested more than $40m to upgrade the beachside food, beverage and retail offering.

The Novotel Surfers Paradise is the Gold Coast’s biggest hotel with 408 rooms, including two multi-level penthouse rooms. It has substantial conference areas and amenity, including tennis courts, a pool and spa.

The 2.3ha land holding offers development upside for Forest Endeavour comparable to freehold, subject to council approval.