An entire city block on the fringes of Surfers Paradise has hit the market following the collapse of Sydney-based property developer Ralan Group.
The Budds Beach site is approved for a development known as “Sapphire” and greenlit in 2016 for 1000 apartments across two high-rise apartment buildings.
Failed Ralan Group, led by director William O’Dwyer, went into voluntary administration earlier this year leaving apartment buyers at risk after investigations found a shortfall of $277 million in the developer’s trust account for deposits.
At the time of its collapse, the developer had a pipeline of more than 3000 residential units, many in the construction or pre-sale stage.
Ralan purchased the Surfers Paradise development site, which spans an entire 11,470sq m city block bounded by Norfolk, Pine, Oak and and Ferny avenues in 2015 for just under $20 million.
Knight Frank are marketing the sale, who are acting under instructions from Deloitte appointed by the mortgagee.
The Sapphire development site’s approval allows for two towers that would stand 71 and 33-storeys tall, along with a café, community centre, restaurant, retail and food premises
Knight Frank’s Mark Witheriff and James Branch are managing the listing, which is offered to market “in one line” or in parts due to the site made up of multiple existing titles and properties.
The pair said the campaign for the sale of the major site is two-fold, offered to market as a whole city block, or as individual beach houses, with expectation interest would come from major developers.
“The existing dwellings offer both owner occupiers and potential investors various opportunities to acquire either one or multiple properties, underpinned by significant future development potential, including both residential and commercial,” Witheriff said.
“We expect some buyers may consider acquiring a grouping of lots attracted by the future development potential in the precinct.”
The Sapphire site is being offered for sale by formal tender which closes at the end of this month.
Source: theurbandeveloper.com
