Former Ken Lacey Tweed Heads brothel premises with pole dancing space listed for April auction

The premises of a brothel formerly owned by bankrupted Gold Coast entrepreneur Ken Lacey have been listed for April 3 auction.

The 31-33 Morton Street, Chinderah, property is near Tweed Heads on the far north coast of NSW.

The listing includes photos of the entertainment area complete with pole-dancing space as well as of the bedrooms, one of which has a jacuzzi and tiger print pillows.

{yoogallery src=[images/stories/2013/03/march20lacey]}

The vacant property comprises a 568-square-metre two-level building, which has current approval for a 24-hour brothel formerly known as Lacey’s Club Lace bordello.

The listing of the brothel made front page news in the Gold Coast Bulletin today after one of Ken Lacey's sons  - Jade Lacey - had his current prison sentence extended by two years.  Another son - Dionne Lacey - is also serving a long jail sentence.

Sam Johnson and James Shugg of Ray White Commercial Coolangatta/Tweed Heads have the listing.

Johnson tells Property Observer, the property offers investors net yields of around 8% to 10%.

"We've received 11 serious enquiries and had a 127 hits on the website, so there's good interest in the property," he says.

Johnson says the property would appeal to investors or developers who might also be interested in running the brothel, which is currently vacant.

Development approval to expand the existing facilities with 19 industrial units expired in January, but could be easily renewed, he says.

“The approved brothel has recently undergone a complete refurbishment,” Johnson says.

“This was a high-class brothel which the former milk magnate Ken Lacey had originally purchased as an inheritance for his sons Jade and Dionne, who are presently serving prison sentences for a number of offences.

“Ken has withdrawn from the sex industry and the property will be sold vacant.

“The property certainly has a colourful history as a previous owner of the brothel Victor Elliott was gunned down there in a contract killing in 2000.”

Shugg says the total land area of the property was 4,093 sqm and there was potential gross rental income of $180,000 per annum.

“The property also includes two large 200-square-metre warehouses with an attached 85-square-metre office,” he said.

“There’s an additional 2000-square-metre of hardstand with approval for 19 industrial units.”

Last September, Property Observer reported on a brothel in the outer Melbourne suburb of Campbellfield which had $3 million price hopes but was passed in at auction.


Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


Be the first one to comment on this article
What would you like to say about this project?