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Jerry Schwartz picks up Ralan asset for a bargain

Ruby Apartments opened in Surfers Paradise in late 2018.

Real estate entrepreneur and investor, Dr Jerry Schwartz, has boosted his Gold Coast portfolio, picking up the city’s Paradise Resort – a former asset of the insolvent Ralan Group – for $43 million.

The price paid is around $32 million less than the $75m paid by The Ralan Group in 2015, which announced in August it has entered voluntary administration with debts of around $500 million.

Paradise Resort Gold Coast has been one of the holiday hotspot’s most beloved family-friendly properties for four decades, with 360 rooms located in central Surfers Paradise. Major redevelopment on the adjacent site also owned by The Ralan Group has seen the first of four towers in The Ruby Apartments complex rise and open in late 2018, featuring a mix of holiday and residential apartments. Work has never commenced on the other three proposed towers. The deal with Dr Schwartz did not include The Ruby Apartments.

The addition of the former Ralan Group property takes Dr Schwartz’s portfolio to 15 hotels and 3,500 rooms across four states and territories. It’s his second hotel on the Gold Coast following the purchase in January 2019 of Hilton Surfers Paradise.

Following the purchase, Dr Schwartz announced he would upgrade Paradise Resort Gold Coast to 4.5-star standard in order to attract a wider traveller market.

Paradise Resort Gold Coast offers 360 rooms and a wide variety of family-friendly activities.

“I know that previous owners planned to knock down the resort and redevelop it for apartments, but we believe there is tremendous demand for quality family-friendly resorts, especially in such prime locations as Surfers Paradise,” Dr Schwartz said.

“Paradise Resort also has potential to grow further, and this purchase will give all those involved with the hotel certainty about the future.

A major charity event has been scheduled for 29 February 2020 in line with Dr Schwartz’s stellar track record in raising significant funds for charitable causes in line with new hotel properties being added to his portfolio.

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