National developer acquires Quality Resort Sorrento Beach short-stay hotel in $31 million off-market sale

National developer Goldfields Group has acquired the Quality Resort Sorrento Beach, which comprises 81 individual short-stay strata-lots, in a $31 million off-market sale.

CBRE’s Perth Associate Director of Metropolitan Investments, Chloe Mason and Director of Metropolitan Investments, Derek Barlow, managed the sale of the property on behalf of the entire ownership group, which comprised 65 individual owners.

Of the sale process Ms Mason said, “From initial consultations with the ownership group right through to settlement, the entire journey took approximately 2.5 years. This transaction certainly presented challenges but personally, it is one that I am very proud of.

“The end result for the sellers was approximately a 35% premium to what they could individually sell a short-stay unit for. Short-stay units don’t attract premium pricing, nor the capital appreciation that residential properties gain, so achieving a 35% premium for the sellers was a fantastic result,” she added.

Mr Barlow said, “The Council of Owners explored a re-zoning of the property themselves, but the complexity and cost of the planning process amongst a large and fluid ownership group made that a challenging pathway. CBRE coordinated the group with a unique approach, expertly presenting the opportunity to a selection of well-qualified buyers in a cohesive manner, which ultimately saw much of the value upside realised for the sellers without having to commit to a rezoning process.”

Located at 1 Padbury Circle in Sorrento, the Quality Resort Sorrento Beach was developed in the late 90s and has operated as short-stay accommodation since its inception. The property has 115m frontage to West Coast Highway, situated on a 7,656 sqm landholding directly opposite Sorrento Beach and 1km from Hillary’s Marina.

Goldfields Group, plan to operate the existing hotel with future plans for a mixed-use development on the site once rezoning is completed.