While construction of the Gold Coast’s Rapid Transit project isn’t due to commence until November of this year, and completion remains as far away as 2014, commentators and industry insiders are already discussing the positive impact the project will have on real estate values along the Parkwood to Broadbeach route.

Many agree that prices are unlikely to jump overnight, but a gradual increase of 10% or more is expected, with even greater gains for developers amalgamating sites close to the new transport hubs that the project will create.  Already, a developers are sitting on a number of sites near the Gold Coast Convention Centre, and the project’s initial Broadbeach terminus, with hopes of large future capital gains.

The Supreme Court has given St. George Bank the go-ahead to sell the Sheraton Hotel at Main Beach to Indian developer Pearl Australasia for $62.5m.

This follows a challenge from the 2nd and 3rd mortgagees on the property who argued that St. George (the first mortgagee) didn’t have the right to sell the hotel business – just the land and the building.  With the sale proceeding, St. George will be the only mortgagee to recoup any money from the sale of the former Raptis Group asset.

Premium Income Fund, the second mortgagee are said to be considering an appeal.

Indian apartment & shopping centre developer and management company, Pearls Infrastructure Projects have purchased the Sheraton Mirage Resort from Raptis Group recievers for under $60m dollars.

Purchased by the Raptis Group in 2005 for $82m, the sale represents a small loss for St. George Bank – who are owed around $60m plus costs.  The main loss will be felt by 2nd mortgagee Premium Income Fund, whose unit owners will not see any of the $20m owed to them.

This is the first Austrlaian acquisition for Pearl Infrastructure Projects, who are expected to undertake a refurbishment of the hotel.

It’s been reported that an Indian developer is in line to purchase the Sheraton Mirage Resort.  Placed in receivership last year following the collapse of the Raptis Group, a $70m deal is currently in the works.

The first mortgagee, St. George Bank, is believed to be owed $60m plus costs on the beachfront Main Beach property

Following the Gold Coast City Council’s rejection of a development application for a 9 storey residential tower on the beachfront in Main Beach, Katie Page, partner of Gerry Harvey and joint head of the Harvey Norman chain, has lodged an appeal.

Set to be held in the Planning and Environment court in the next few months, the appeal aims to overturn the Gold Coast City Council’s decision.  Meanwhile, a group of local residents opposed to the development have raised over $130,000 to fund the legal fight against the development themselves.

Aiming to raise half a million dollars – a similar figure to that spent on the successful legal fight against the 5 storey ‘Tedder One’ development  – the residents, in conjunction with Council, feel they have a strong chance of success.

A 9-storey apartment building in Main Beach proposed by Magic Millions owner and wife of Gerry Harvey, Katie Page has been rejected unanimously by Council.

Despite close to 800 letters from Main Beach residents opposed to the deverlopment, it was ultimately rejected because it failed to meet 13 criteria – not least of all the area’s 3 storey height limit.

Mayor Ron Clarke has criticised the couple for attempting to use their wealth and reputation to avoid meeting the development criteria and has welcomed any court action they may wish to take against Council over the rejecting, stating that “I’d love them to, they’ve got no leg to stand on.”

A battle is brewing in Main Beach as Council decides whether or not to ignore the existing 3 storey height limit and approve an 8 storey apartment building at 3565 Main Beach Parade.

The developer, Magic Millions owner and wife of Gerry Harvey – Katie Page – was overseas as the Main Beach Progress Association tabled 800 submissions opposed to the new building – written off as “bullshit” by Mr. Harvey.

Should Council approve the building, it will set an interesting precedent for the area – which at present is made up of a large number of older, 3 storey walk-up buildings, and could set  off a wave of redevelopment.  By the same token, given the level of opposition, a relaxion of the Town Plan could also result in a strong community backlash.

Less than a week into a month-long expression of interest campaign, it has been reported that there is strong interest Raptis Group’s sale of the beachfront Sheraton Mirage in Main Beach.

The property, purchased by the Group for around $82 million in 2006 could fetch in excess of $100m – which would make a significant dent in the $300m of debt the Group needs to repay in the short term.

The interested parties are primarily Australian, however there has also been enquiry from Asia and the Middle East.  Among them are Gold Coast businessman Craig Gore, who through his own group International Marina Development and Management has been in discussions with City Pacific to purchase the Mariner’s Cove Marina, opposite the Sheraton.

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.

In an attempt to raise capital and pay off some of its $700m debt, Raptis Group have put out calls for expressions of interest in the Gold Coast Sheraton Mirage in Main Beach.

The Group maintains that this move was planned a fortnight hence, however this latest act – in addition to the search for a joint venture partner for the Surfers Paradise Hilton development are sure signs that the company is in serious need of liquidity.