iProsperity, an Asian investment firm, has found a Chinese-backed buyer for its two linked properties located in suburban Melbourne. Commercial Real Estate reported that the Century City Walk Shopping Center and the 200-room Novotel Melbourne is being offered to the buyer for a $150 million deal.
The title documents labeled the buyer as Chaolong Developments, which have links through a director to Chinese provincial developer Runjiang Investment Group. The investment group, in turn, is a Shijizhuang-based developer hailing from China's northern province of Hebei. The latest deal included the acquisition of a joined mall and hotel located in Glen Waverley in Melbourne's south-east. iProsperity listed the property on the market back in April.
iProsperity is led by Michael Gu and has been one of the busier players in the market. The investment firm has been involved in transactions involving ultra-high-net-worth Asian investors, making investments on their behalf. The platform's divestment decision arrives two years after a deal with a retail mall on Springvale Road, which fetched $45 million for the firm.
iProsperity seems intent on fielding an Asian empire, as it added other moves aside from the Century Walk deal. It is in the thick of deals to acquire Iririki Island, an island resort and casino near the Vanuatu capital of Port Vila. The 28 hectare resort has been described as the "jewel in the crown of Vanuatu" and has also been labeled by JLL as the nation's "premier" gambling corner.
Property Observer cited a newspaper report that the Vanuatu government has been talking with different investors, including a group from Laos that is interested in having a casino set-up in the country. The capital of Port Vila as well as Luganville on Santo in the north were excluded from the deal, as the country is trying to spur financial growth and jobs on the other islands in Vanuatu.
The unit has been a problem for as long as someone owned it. The JLL sales brochure did not advise on the long-running legal feud it had with the owners of another 68 units in the island over a long list of issues. Rent, corporate fees, and insurance were just a few of what the owners were concerned about.
The acquisitions by Chaolong Developments followed the Runjiang Investment Group's debut in the local market. The firm bought a prominent St Kilda Road tower through a deal that was allegedly priced at $163 milion. The investment firm is now proprietor of the 509 St Kilda Road through nomination from buyer Michael Xie.
