Over a thousand owners of a tired 62-unit Broadbeach timeshare complex have sold the site for $45.0017 million to a residential developer, speculated to be from offshore.
The unusual disposal of the Voyager tower has been six years in the making – culminating in March when the Supreme Court of Queensland placed three owners as trustees – in effect permitting the listing despite five objectors.
Mahoneys Lawyers and Advisers handled the trustee component and other legal parts of the transaction to date including the amalgamation of titles.
It will also wind up an affiliated company voluntarily.
Broadbeach is four kilometes south of Surfers Paradise.
Developed in 1984 by Melbourne barrister Harry Shmelling, Voyager was sold down as a resort operated timeshare scheme with a resident-only pool, spa, sauna and tennis court.
On 2070 square metres at 167 Old Burleigh Road, on the north west corner of Elizabeth Avenue, abutting the Oasis Shopping Centre, which Niecon developed, and recently sold to Abacus, all flats have one bedroom.
Two units are maintained as a manager’s residence, and for operations.
The others are each owned by 51 parties – meaning there were 3060 voting rights.
Each of those interests also bought a share in a company, Voyager Resort Limited (VRL), which maintained the property and oversaw any sub-letting.
Timeshare timed out
Despite the Voyager apartments proving profitable in terms of income – the Gold Coast timeshare concept failed when owners struggled to offload their assets.
For VRL, this resulted in owners falling behind on levies or halting communication, leaving remaining members to shoulder the upkeep.
As the resort aged and more maintenance was needed, this issue became prevalent, Mahoneys partner Ben Seccombe said.
Subsequently, the company, having decided to advance with a site sale, started securing voting rights – or weeks – from parties which had defaulted on levies; this decision also prevented owners of nearby apartment complexes, which stood to lose views if the site was redeveloped, from buying an interest and blocking the move.
By the start of this year there were 1062 listed owners of 167 Old Burleigh Rd – a mix of people and companies (story continues below).
Minority wanted to hold
The Voyager sale is the first community title scheme owned and operated as a timeshare to be terminated and sold in Queensland by an in-house statutory trustee team, Mr Seccombe said.
The process meant the disposal cost vendors far less – an estimated $400,000 – than if they appointed a liquidator, as has typically been done.
Structuring the divestment this way also avoided the need for a ‘resolution without dissent’ from all owners – an inhibiting factor in previous attempts to sell Gold Coast timeshare complexes.
Had the trustee framework not been implemented at Voyager, five owners out of 470 who voted would have blocked the sale.
Elsewhere on the Gold Coast, in Surfers Paradise, the former Surfers Royale timeshare complex at 7 Northcliffe Terrace sold for $22.4m in 2015.
On 2251 sqm, that property traded again last year for $45m, and is now earmarked for a 38 level, 108 unit residential complex.
The Tiki Village, at the south west corner of Cavill and Ferny avenues, between Appel and Lionel Perry parks, also recently exchanged to a developer, for $30.5m.
Oasis residents to lose views
Marketed by Kollosche as Broadbeach’s best block, the Voyager site has the potential to make way for two towers.
Planning precedents have also been reset since the complex was developed, with a discretionary height limit now put at c30 storeys.
Any development would rob east facing beach views presently enjoyed by residents at the Oasis tower, also developed by Niecon.
Next door to Voyager – also in front of Oasis’ eastern tower – is the two level Kurrawa Lodge which Brisbane real estate agent John Kubatov is planning to replace with a 33 floor apartment project, branded Class Broadbeach.
Elsewhere in the suburb, a 46 storey apartment complex is earmarked for 99-101 Old Burleigh Rd, near the north west corner of Armrick Ave.
More to come.
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