Pearls bought the Christopher Skase-developed property from Raptis Group recievers last year 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.

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.

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

Having acquired the 1.1 hectare site from Raptis & City Pacific-linked company Cira International for $33m, CPP are hoping for approval for a pair of towers, 55 and 40 storeys each, as well as ground floor retail & dining space on the block bounded by Surfers Paradise Blvd, Ferny, Ocean & Pandanus Aves.

CPP Hope to launch the project late this year, and feel that with a recovering economy and few competitors currently on the market the project will be wll recieved.

It seems that rumours of the Group’s death have been greatly exaggerated.

Following a unanimous vote at a creditor’s meeting last week, all of the Group’s debt has been placed in a creditor’s trust (along with 35 million preference shares – valued at 1 cent each).  This leaves the way clear for Raptis to recommence capital raising and resume business.  Should all go well, the preference shares can be cashed in or redeemed for ordinary shares in two years time – which, for the creditors was presumably a more attractive prospect than liquidation and no return at all.

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.

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.

The three tower, $700m project is one of Australia’s largest mixed-use developments, and is being given a lot of credit for revitalising the suburb of Southport.

Settlements in the third and final tower will begin on Monday the 20th of April, however whilst the construction is finished, there remains close to 150 apartments (of a total 788) still for sale throughout the project.

Following the repayments, creditors will likely own about 40% of the company, and it’s possible that the sale of some of the groups assets – including future development sites could be prevented.