Following the announcement that the Federal Government had set aside $365 million in the recent budget to assist with the construction of the Gold Coast’s light rail project, Councillors are hopeful that the State Government is close to deciding upon a private partner to build the project.

With the project anticpated to create around 6000 jobs, Council are keen to get construction underway.The Light Rail Project also complements other economic stimulus measures already underway, including the Surfers Paradise Foreshore upgrade and Southport Parklands Redevelopment.ikoni

After months of negotiation and speculation, Brookfield Multiplex have taken over the Surfers Paradise Hilton Hotel & Residences development from Raptis Group.

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.

In the wake of a collapsed $205m with a Korean company last year, and following increased pressure from financier Fortress Credit, City Pacific have placed their 11,000 sqm beachfront site on the corner of Old Burleigh and Wharf Road back on the market.

Assembled at a cost of over $100m in 2007, the site is believed to owe City Pacific and Fortress a figure approaching $200m.  However, following recent falls in the value of beachfront property, it is widely expected that any sale – whether it be the entire site in one line, or broken into portions – will leave a significant shortfall.

After several months in limbo, following the financial collapse of Raptis Group, it appears that a deal has been struck with Candian construction company Brookfield Multiplex to complete the Hilton Hotel and Residences Project in central Surfers Paradise.

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.

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.

Council’s Economic Development and Tourism Committee has moved to increase the existing $50m stimulus package by $47.5m.

The initial package included $25m for redevelopment of the Surfers Paradise foreshore, as well as over $12m for roadworks and $4.5m for bikeway construction.  The additional $47.5 is slated for the ongoing development of the Southport Broadwater Parklands.

The package, designed to stimulate economic activity and provide jobs, is made up of a number of projects all of which are ready to proceed, subject to budget approval.

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.

While Juniper’s new building, Soul, will not be completed until 2011 – it has been announced that the ground-level shopping and dining precinct, at the beach end of Cavill Mall should be open for business by the end of the year.

Following in the footsteps of Raptis’ Chevron Rennaisance and Sunland’s Circle on Cavill Developments, this third major new development is the next stage in the urban renewal of Surfers Paradise.  Soul is seen by many as a catalyst for the rejuvenation of the Esplanade precinct, and in Juniper’s recently release concept art is anything to go by, it will mark a great leap forward.

The tower itself, due for completion two years hence is 60% sold.

Just a block away, the (currently) Raptis Group-owned ‘Iluka’ tower remains on the market – the redevelopment of which would further enhance the Surfers Paradise Esplanade.

Following the Reve on River Terrace development being placed in recievership last month, the site is being sold in order to recover costs.  The $170m Manassa Group project, situated on a 5028sqm site in southern Surfers Paradise was to be made up of 197 apartments plus a cafe between River Terrace and Rememberance Drive.

The exact amount of debt owed to financier St. George is unknown, but believed to be over several million dollars.

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.