Palazzo Versace sells for $68.5 million
Property developer and manager Sunland Group has sold its Palazzo Versace hotel on Queensland's Gold Coast to private investors for $68.5 million.
Sunland did not name the investors but said one of the conditions of the sale was approval by the Foreign Investment Review Board. Media reports said the investors were two major Chinese companies.
Sunland told the Australian Securities Exchange on Thursday that it had entered into a conditional contract with private investors for the sale.
The statement said the sale reflected the "approximate book value of the hotel" and that proceeds would be used to initially repay the hotel's borrowings of $27.4 million.
Settlement of the sale is anticipated by 30 November.
The 200-suite hotel property was originally expected to fetch about $80 million when it was put on the market several months ago.
Sunland sold the property as it wants to concentrate on residential property development on the east coast.
The company in August reported a 32 per cent fall in net profit to $14.9 million for the 2011/12 financial year, and did not pay a dividend.
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