$55m contract for Kooralbyn Valley Resort terminated by owner

A $55 million contract for the Kooralbyn Valley Resort has been terminated.

A $55 million contract for the Kooralbyn Valley Resort has been terminated after the buyer failed to stump up a deposit.

The resort, which is owned by Peter Huang, who is also the founder of Yong Realty, went under contract last month, subject to 30 days due diligence so the buyer could get their finances in order. The July 6 deadline passed, with the buyer asking for an extension.

The Kooralbyn Valley Resort in the Scenic Rim. The hotel still operates.

It is the third time a mutually agreed contract for the property, which hit the market in March 2020, has collapsed due to what Mr Huang calls “Covid-19-related issues”.

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“If it wasn’t for Covid, the resort would have been sold several times over to international buyers,” he said. “We have had dozens of interested parties and 10 cash offers, but they were low and so unacceptable. We did accept three offers but none of them have been able to get clearance for their funding.

The resort is in need of a facelift.

“I’m still confident that someone will come up with it, because it is a selling for a fraction of what it is worth. The entire resort is equivalent to what someone could stump up for a house on Mermaid Beach.”

Fed up with the repeated delays, Mr Huang this week made the decision to terminate the most recent contract so he could start negotiations with other interested parties.

And in a somewhat unorthodox move to help the sale along, he has offered to provide vendor finance to any “genuine” buyer at 5 per cent annual interest payable from the second year as a private lender.

It is the third time a contract for the resort has collapsed.

He said with vendor finance available, the capital required upfront by a potential buyer would be less increases the chances of a sale.

“By offering the funding, maybe we can help someone local compete with overseas buyers,” he said.

Mr Huang acquired the site, located in the Golden Triangle between Brisbane and the Gold Coast and surrounded by hinterland, during the global financial crisis.

The owner is ready to offload the property.

He poured tens of millions of dollars into the resort’s renovations and operations which in its heyday was a hideaway for Kerry Packer.

The Packer Lodge was built by Peter Ables and Arthur Georges and the 102-room main resort was built by Japanese owner Towa Group in 1980 for about $45 million.

Covering more than 800 acres, with 27 existing lots and 30 buildings, Mr Huang claims that an independent valuation shows the potential for a $500 million to $2 billion development project to be built on the land, depending on a buyer’s master plan and level of funding.

The owner is looking to launch a new venture.

He said he was ready and willing to cut a deal as he had recently required a clothing manufacturing business and was looking to launch of a global premium clothing brand called BESTT.

While the venture is not contingent on the sale of the resort, Mr Huang said he could use the money to launch the business on a bigger scale.

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