Following a collapsed contract late last year, Raptis Group and City Pacific’s development arm, CP1 have sold their jointly-owned site adjacent to the Gold Coast International Hotel in Surfers Paradise.

Originally purchased, along with the hotel, for a planned 4 tower development, looming debts have forced the sale.  Tipped to be a fire-sale and do little more than recoup a $15m debt owed to Lend Lease, the sale has surprised many by almost reaching the $30m price tag local developer Con Nikiforides had offered for it last November before the contract collapsed.

With the buyer’s identity subject to a confidentiality clause – but tipped to be an overseas party – the strong sale price is a positive sign for the local market.  The contract on the 1.15ha site, on the corner of Surfers Paradise Boulevard and Ocean Ave is due to settle later in the year.

Phil Sullivan has stepped down as head of Gold Coast company City Pacific and director of City Pacific’s development arm CP1.

The resignation comes hot on the heels of the announcement that CP1 – hit very hard by the global credit crisis – made a $109m loss last financial year, with a 76% fall in total revenue.  Mr. Sullivan has retained his 30% stake in the company, and is believed to be staying on a consulting role as his successors take charge of the companies.

At the behest of the project financier, the Commonwealth Bank, City Pacific’s development arm, CP1 has placed the 2.49ha Paradise Resort site, at the northern end of Surfers Paradise, on the market.

Initially a joint venture with Azzura, CP1 took control of the ambitious 4 tower project in May.  Billed as the nation’s first fully themed ‘entertainment resort’, the project may still go ahead in its current form if another developer buys the site and decides to proceed with the existing plan.

Purachsed for $61m in 2004, CP1 are hoping to realise a price in excess of $80m for the site.