The Supreme Court has given St. George Bank the go-ahead to sell the Sheraton Hotel at Main Beach to Indian developer Pearl Australasia for $62.5m.

This follows a challenge from the 2nd and 3rd mortgagees on the property who argued that St. George (the first mortgagee) didn’t have the right to sell the hotel business – just the land and the building.  With the sale proceeding, St. George will be the only mortgagee to recoup any money from the sale of the former Raptis Group asset.

Premium Income Fund, the second mortgagee are said to be considering an appeal.

Indian apartment & shopping centre developer and management company, Pearls Infrastructure Projects have purchased the Sheraton Mirage Resort from Raptis Group recievers for under $60m dollars.

Purchased by the Raptis Group in 2005 for $82m, the sale represents a small loss for St. George Bank – who are owed around $60m plus costs.  The main loss will be felt by 2nd mortgagee Premium Income Fund, whose unit owners will not see any of the $20m owed to them.

This is the first Austrlaian acquisition for Pearl Infrastructure Projects, who are expected to undertake a refurbishment of the hotel.