After months of negotiation and speculation, Brookfield Multiplex have taken over the Surfers Paradise Hilton Hotel & Residences development from Raptis Group.

Construction is expected to recommence shortly, however it is unknown if the project will continue in the exact form that Raptis designed it.  The door has been left open for plan and layout changes to the development, not to mention adjustments in price.

With some apartments priced as high as $14,000/sqm – a figure rarely seen on the beachfront, let alone on a non-beachfront site – there is speculation that a significantly softer property market will not readily accept the project without an adjustment in pricing expectations from the developer.

After several months in limbo, following the financial collapse of Raptis Group, it appears that a deal has been struck with Candian construction company Brookfield Multiplex to complete the Hilton Hotel and Residences Project in central Surfers Paradise.

According to Gold Coast Mayor Ron Clarke, Multiplex are “Set to move straight away”, and contruction is anticipated  restart in the next week or two.

The ANZ Bank, which took control of the project in late 2008 has yet to make an official statement on the status of the project.

After months of turmoil, and with a number of subsidiary compaines sliding into recievership, Raptis Group has appointed an administrator to assist with its financial woes.

The administrators, from BRI Ferrier, have prior experience with the company – having been appointed recievers of the companys contruction arm last December.

The first creditor’s meeting is expected to take place next week.

Despite recent statements that pointed towards Brookfield Multiplex assisting the financially troubled Raptis Group in the completion of their two-tower Hilton Hotel and Residences project in central Surfers Paradise, a final agreement is yet to be reached.

One major hurdle at present is around A$2 million worth of infrastructure charges which Raptis and Multiplex representatives are negotiating the deferral of with the Gold Coast City Council.  There are some concerns however, that if deferred (or exempted completely) the charges could be extracted from apartment owners in the future, a situation that some councillors want to avoid.  There are also concerns that leniency in this matter will set a precedent for future developments.

The $2m is slated for public art, a tourist information centre, streetscaping and public security cameras.

It has been confirmed that negotiations are taking place between embattled developer Raptis Group and Brookfield Multiplex over a joint venture to complete the Surfers Paradise Hilton Hotel and Residences.

It was rumoured that Brookfield Multiplex would purchase the project outright, however it appears more likely that Raptis will retain some involvement in the development.

With around $700m in debt to repay over the next year, $300m of which needs to be repaid in the near future, trading in Raptis Group shares will remain suspended for a further 2-4 weeks, as the Group tries to sell off assets and find joint venture partners.

Officially for sale are the Sheraton Mirage and Midwaters, a small unit block – both in Main Beach.  However it is understood that the Group would also consider offers on the Holiday Inn and a vacant block of land next to the Gold Coast International Hotel in Surfers Paradise.

Additionally, Raptis are seeking a joint venture partner for the Surfers Paradise Hilton project, as well as the redevelopment of the recently-acquired Iluka building on the esplanade in Surfers Paradise.  Whilst a JV is believed to be the company’s preference, an outright sale of Iluka would likely be on the cards as well.

Work is likely to remain halted on the Southport Central Development – which went into receivership last week at the behest of the project funder, Capital Finance Australia – until at least Tuesday, as workers and suppliers seek assurances that they will be paid in full.

Following a contractor walk-off earlier this week, and the appointment of receivers to their Southport Central development, it is rumoured that Raptis Group are on the search for a partner to assist with the completion of the Surfers Paradise Hilton Hotel and Residences.

The two-tower project, which comprises a 5-star Hilton Hotel, residential apartments and commercial and retail space is under construction, with completion initially slated for late 2009.  With doubts as to the embattled company’s ability to service over $700m worth of debt, serious reservations are being raised as to the future of this project without assistance from a new partner.