Sunland sells Palazzo Versace hotel

Australian property developer and manager Sunland Group has sold its Palazzo Versace hotel on Queensland's Gold Coast to private investors for $68.5 million.

Without disclosing the identity of the buyer the group said, a condition of the sale was approval by the Foreign Investment Review Board.

According to media reports the investors are two major Chinese companies.
In a statement to the  Australian Securities Exchange on Thursday Sunland said it had entered into a conditional contract with private investors for the sale.

The statement added the sale reflected the "approximate book value of the hotel" and the proceeds would go towards initial repayments of the hotel's borrowings of $27.4 million. The sale settlement is anticipated by 30 November.

The 200-suite hotel property was originally expected to go for $80 million at the time it was put on the market some months ago.

The company has sold the property as it is looking to focus on residential property development on the east coast. In August, the company posted a 32 per cent drop in net profit for the 2011/12 financial year, and did not pay a dividend.