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.

Following a contractor walk-off earlier this week, and the appointment of receivers to their Southport Central development, it is rumoured that Raptis Group are on the search for a partner to assist with the completion of the Surfers Paradise Hilton Hotel and Residences.

The two-tower project, which comprises a 5-star Hilton Hotel, residential apartments and commercial and retail space is under construction, with completion initially slated for late 2009.  With doubts as to the embattled company’s ability to service over $700m worth of debt, serious reservations are being raised as to the future of this project without assistance from a new partner.

Workers and suppliers have walked off Raptis Group’s Southport Central site today following the appointment of receivers to the several subsidiaries debt-laden company.  The walk-off today follows similar action from contractors at the Group’s Hilton Surfers Paradise construction site.

Over the past few weeks there have been concerns about Raptis Group’s ability to service in excess of $700m worth of debts.  At this stage, management have requested that shares be suspended from trading for two days in anticipation of a refinancing arrangement.

Despite making top of the Gold Coast’s Most Powerful 100 People (as judged by the Gold Coast Bulletin) Jim Raptis’ blessings have been mixed this week, with the release of Raptis Group’s financial accounts earlier this week showing a drop in operating profit of nearly $14m.

A slower property market has a strong impact on the company, which is also reportedly in negotiation with its lenders, who are owed in excess of $700m – approximately $600m of which will need to be repaid or refinanced before the close of the current financial year.

However, with sales still continuing on the Group’s Southport Central and Hilton Surfers Paradise developments and with numerous assets, including the recently-acquired Iluka building in Surfers Paradise, and Sheraton Hotel in Main Beach, it has been suggested that it may be possible for the Group to clear as much as $300m-$400m of that debt by the end of the financial year through the sale of some of these assets.

The Group is no doubt hopeful that yesterday’s drop in interest rates, and talk of a resurgence in the local property market will herald a better twelve months to come.

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.

Following their recent purchase of the Iluka building on the corner of Trickett Street and Northcliffe Terrace, Raptis Group have been given approval to construct a 57 storey, 351 unit apartment building on the 3498 square metre site.

The new building will contain a few unique features, including a large underground water tank to irrigate the gardens and foreshore opposite. In addition, Council is currently discussing the possiblity of a roof-mounted artistic lightshow – similar to those on some Hong Kong buildings.

The 3/4 of a billion dollar development will include two commercial levels at the base and represents a continuation of the rejuvenation of central Surfers Paradise – which began several years ago with Raptis Group’s three tower Chevron Renaissance development and has included Sunland’s Circle on Cavill, Juniper’s 77-storey Soul development as well as Raptis’ two tower Hilton Hotel and Residences.

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.