Following the recent launch of Victoria Towers in Southport – their maiden development on the Gold Coast – South Korean developer, City Plan Partners are waiting on Council approval for a 715 apartment, mixed use development in northern Surfers Paradise.

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.

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.

Following the recent sale of the Gold Coast International hotel, joint owners Raptis Group and CP1 have sold the adjoining 1.1ha site to Pandanus Beach Investments for around $30m.

Whilst the $30m is no doubt welcome, Raptis Group still have close to $300m of debt to recover in the next few months if they are to remain solvent.  The sale is also good news for CP1, whose shares have been in a trading halt for over a month pending a funding announcement.

The new owner of the site, Pandanus Beach Investments is believed to be linked to local developer Niecon, who are currently building The Oracle project in Broadbeach.

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.

For some in Gold Coast development sector, it has been a tumultuous few days.  Raptis Group chairman, Jim Raptis has defended his company’s debt holdings – which are believed to exceed A$700m – and trading in City Pacific-linked developer CP1 shares has been suspended pending an announcement regarding its debt facility.

Today, City Pacific and Raptis announced that they plan to sell the jointly-held Gold Coast International Hotel to enterntainment and hotel group Amalgamated Holdings – barely 18 months since acquisition of the site.

Originally purchased along with an adjoining parcel of land for around $70 million in early 2007, and slated for a four tower mixed use development, CP1 and Raptis have reportedly agreed to a price of around $56.5 million for the hotel, electing to retain the 1.1ha site next door (believed to be valued in excess of $40m).

Amalgamated will likely refurbish the hotel, while the proceeds from the sale will be used by Raptis Group to pay down debt.  City Pacific Managing Director Phil Sullivan did note however, that the sale will not affect CP1′s debt facility.

Since Tuesday’s suspension in share trading, City Pacific has reportedly been in discussion with three possible buyers or joint venture partners for a number of it’s assets.

The company, which owns either fully or jointly, a number of large development sites on the Gold Coast, including Mariner’s Cove and the Gold Coast International (with the Raptis Group), the $100m Surfers Paradise beachfront Pacific Beach site and the King Tide site in Broadbeach, is believed to need to raise some funds in order to repay a number of debt commitments, notably $240 million to the Commonwealth Bank.

In addition to Azzura’s recently discussed Pacific Resort in Northern Surfers Paraidse, Raptis and joint venture partners CP1 are requesting preliminary Council approval for a four-tower mixed-use development on the current site of the Gold Coast International Hotel.

The block, 2.28 hectares in total, fronting Surfers Paradise Boulevard and Ferny, Staghorn and Ocean Avenues was bought last year from Japanese Company Orix for around $70 million.  If approved, the GCI could become on of the first high-rises on the Gold Coast to be demolished.

At this stage, the plan is for a four-stage redevelopment, comprising four towers ranging in height from 45-65 storeys and containing around 1600 apartments and hotel rooms.  One of the towers is slated to be at least partly occupied by a 5-star hotel chain.  In addition to the accomodation, there will be plenty of retail and nearly 5000sqm of commercial space.

Currently undergoing refurbishment, the 1980′s-built GCI Hotel is planned to be demolished only to make way for the fourth and final stage of the project.  Given that Raptis and CP1 are only making a preliminary application at this stage, it will still be several years before (assuming the project is approved) we get to watch the wrecking ball at work.

Combined with Azzura’s four tower project, and a two tower Thakral development planned in the same area, the next few years will see the northern fringe of Surfers Paradise transformed, with up to ten new highrise buildings and around 4000 apartments and hotel rooms currently on the drawing board.