ORIX Australia has sold of its stake in the Gold Coast International Hotel and northern adjacent land for $70 million to the Raptis Group and CP1.
Raptis Group and CP1 have formed a special purpose joint venture vehicle, CIRA International to buy the Gold Coast International Hotel as well the 2.28 hectare development land.
Under the 50-50 arrangement, Raptis Group will focus on future development of the site, whilst CP1 will manage the Gold Coast International Hotel.
The Gold Coast International acquisition is the third hotel property in Raptis’ portfolio. In June last year, the company bought the Sheraton Mirage in June 2006 and in March 2005, the ANA Hotel – now Holiday Inn.
Raptis’ chairman Jim Raptis said the Gold Coast International Hotel is a long established Gold Coast landmark and it is a significant acquisition for the Raptis Group.
CP1’s chief executive Phil Sullivan said the synergies are significant when you consider the two properties include two hotels, one a top family resort and the Gold Coast International, a long established five star hotel on the Coast.
Diversified financial services company City Pacific holds a 51% stake in CP1.
ORIX Australia will receive $70 million for the property and Lend Lease will receive a fee to facilitate the sale agreement.
The non-bank lender bought the GCI site, which includes the hotel and adjoining land from Daikyo in June last year.
The GCI site was subject to a joint venture agreement between Daikyo and Lend Lease.
Lend Lease and Daikyo had unveiled an $850 million plan to develop the 2.28ha site into a mixed-use residential and retail precinct with an end value of $2 billion.
Following the sale, the joint venture between Lend Lease and ORIX to develop the G.C.I. site and adjacent properties will be concluded.
The arrangements are expected to be settled in April 2007.
Australian Property Journal
