No sooner had the ink dried on the deal for a Chinese consortium to purchase the 11,000sqm Pacific Beach development site in Surfers Paradise than an obstacle appears to have surfaced.

Foresight Acquisitions, which amalgamated and jointly owns the property with City Pacific has placed a caveat on the sale of the property which could delay or prevent settlement.

Foresight has launched a claim in the Supreme Court for $25m from the now-failed City Pacific.  They are seeking damages for lost profits as a result of City Pacific’s failure to see the project through to completion.

After months in limbo, the jointly Foresight Acquisitions and City Pacific-owned Pacific Beach site in Surfers Paradise has reported been sold.

A Chinese consortium beat local developer Sunland to the property – but at this stage a price has not been disclosed.

The 11,000sqm site on the corner of Wharf and Old Burleigh Roads is the largest beachfront site amalgamated in recent years and the sale represents a significant expression of confidence in the local market.

Whether the Chinese group will continue with the existing approved development plans or apply for changes is not yet known.  One interesting fact is though: The group has obtained approval from the Foreign Investment Review Board to sell 100% of the project to overseas buyers (as opposed to the usual 50%) – suggesting that they plan to make a considerable number of sales in their home market.