A 49-LEVEL hotel and apartment tower has run off the rails despite $80 million in sales.
The Grand Central, pitched to soar above all other buildings in Southport, is being shunted on to the market in the wake of the developer failing to get construction funding.
It is understood a fund that invests Chinse money was to provide tens of millions of dollars but ran into hurdles.
Similarly, Australian banks were not willing to help.
The BDA-designed Grand Central was released to the market 18 months ago and 160 of its 264 apartments went under contract in an $80 million-plus buying flurry.
Construction was to start in March last year but it became clear before Christmas that the project was in trouble when the site quietly was offered to other developers.
Buyers were this week told the project had been canned and that their 10 per cent deposits would be returned.
The Grand Central site is owned by Southport Central, a company controlled by Newcastle lawyer Wayne Roddenby.
It is believed money for the Grand Central project was to come from an ASIC-approved Melbourne fund that was investing Chinese funds sent to Australia under the Significant Investment Visa program.
Australian banks were not a funding option.
They have shied off lending to projects that have sales to offshore buyers, especially since the Chinese Government in November curbed the sending of money out of China.
The demise of Grand Central — a name synonymous with the busiest railway station in the US — comes on the heels of Southport councillor Dawn Crichlow on Tuesday criticising developers for sitting on their sites and not building, despite getting approvals.
The Grand Central site spans 2432sq m on the corner of Scarborough and Hicks streets and was bought for $7.665 million in August 2015.
At the time the tower was unveiled, Newcastle developer John Byrnes was named as a partner in the project.
Initially Grand Central was to offer a first for Gold Coast high rises — dedicated floors for students, separate floors of serviced apartments for short-stay visitors, and 33 levels of residential apartments.
Later the plan was amended, with 214 hotel rooms replacing the student rooms and serviced apartments.
Lawyer Mr Roddenby and developer Mr Byrnes last year became involved in two other Gold Coast property plays.
A former nightclub property in Orchid Ave, Surfers Paradise, was bought for $8.8 million.
Approval was gained for a 27-level hotel and the site was put on the market early this year but has not sold.
A waterfront site on Hope Island was bought for $16.5 million for house and apartment development.
Originally Published: http://www.goldcoastbulletin.com.au/