Bidders look but don’t touch at Ken Lacey brothel auction

A Gold Coast brothel that was formerly owned by bankrupted Gold Coast entrepreneur Ken Lacey was passed in at auction last Wednesday despite strong interest from investors.

The glitzy brothel was passed in on a vendor bid of $1.5 million with no bids from the five buyers present at the auction.

Ray White agent Sam Johnson says he expects the premises to sell within a few weeks.

“We’re dealing with about eight people now. The hottest buyers in the room weren’t in the position to buy it at auction. They needed approval for more financing,” Johnson says.

“If bidding had started they might have chucked their hand in the air to make sure it didn’t sell.”

It’s now on the market for $2 million.

Johnson expects the property to rent for around $180,000 per year, which would give potential investors a 9% gross yield.

Johnson says all interested parties were interstate investors.

The property at 31-33 Morton Street Chinderah is a 568-square-metre two-level building with current approval for a 24-hour brothel formerly known as Lacey’s Club Lace bordello.

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The property was originally developed by Ken Lacey for his incarcerated sons.

Johnson says Lacey has since withdrawn from the sex industry.

“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,” Johnson says.

The brothel contains a kitchen, a laundry, an office, five bedrooms with ensuites on the ground floor and a large entertainment area on the first floor with a kitchen and private function rooms.

The bedrooms include luxury beds with red and white wall themes, hanging picture frames, and a complementary bath or spa.

The property also includes two large warehouses, an office and a hardstand.