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.

After months of turmoil, and with a number of subsidiary compaines sliding into recievership, Raptis Group has appointed an administrator to assist with its financial woes.

The administrators, from BRI Ferrier, have prior experience with the company – having been appointed recievers of the companys contruction arm last December.

The first creditor’s meeting is expected to take place next week.

Raptis Group’s downward slide continues, with another subsidiary falling into recievership.  The company, which owns the Piazza on the Boulevard shopping centre and adjacent Galleria has appointed Ernst and Young to manage and sell the assets.

Piazza on the Boulevard, attached to the ANA hotel, was planned several years ago as the site of a 65 storey hotel/apartment building – a project that did recieve council approval at the time.

The ANA is believed to be unaffected by the placement of the property in the hands of recievers.

KordaMentha, who several months ago took over as recievers of embattled Raptis Group’s Southport Central project have announced the completion of structural works on the third, and final, main tower of the development.

With only internal works to be completed in the upper levels of the tower, it is likely that Tower 3 will be open in the first quarter of 2009.

With 199 apartments still available, the remaining challenge it to see the project’s remaining stock sold.

Despite recent statements that pointed towards Brookfield Multiplex assisting the financially troubled Raptis Group in the completion of their two-tower Hilton Hotel and Residences project in central Surfers Paradise, a final agreement is yet to be reached.

One major hurdle at present is around A$2 million worth of infrastructure charges which Raptis and Multiplex representatives are negotiating the deferral of with the Gold Coast City Council.  There are some concerns however, that if deferred (or exempted completely) the charges could be extracted from apartment owners in the future, a situation that some councillors want to avoid.  There are also concerns that leniency in this matter will set a precedent for future developments.

The $2m is slated for public art, a tourist information centre, streetscaping and public security cameras.

It has been confirmed that negotiations are taking place between embattled developer Raptis Group and Brookfield Multiplex over a joint venture to complete the Surfers Paradise Hilton Hotel and Residences.

It was rumoured that Brookfield Multiplex would purchase the project outright, however it appears more likely that Raptis will retain some involvement in the development.

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.

Workers are back on site at Raptis Group’s Southport Central development today, after a tumultous week which saw receivers take over the project.

With just eight storey’s left to complete the third and final tower, it is believed that up to 400 out-of-pocket suppiers and contractors have been paid at least half of what they are owed, with the balance to be paid out shortly.

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.