Another Queensland tourism development collapses

The parlous state of Queensland’s tourism and property sectors has been highlighted by the collapse of another high profile resort development in Noosa.

Viridian Noosa, which was developed by Leighton Properties and Macquarie Real Estate, was placed in the hands of receiver John Cronin of accounting and insolvency firm McGrathNicol on Wednesday.

The $300 million development is continuing to trade while the receiver assesses the project’s financial situation.

Of the 198 units in the project 160 apartments and villas remain unsold.

A five-star resort at the project, which is managed and Outrigger, is continuing to trade and is unaffected by the receivership.

The Queensland tourism sector has been hit hard in recent years by falls in Australian tourist numbers due to fragile consumer confidence, by lower international tourist numbers due to the high Australian dollar and more recently by the state’s inclement weather.

Those problems have compounded the difficult environment faced by property developers, who have been battling high debt levels, unfriendly lenders and in some areas oversupply.

The Sunshine Coast particularly has had its problems. Last year saw the collapse of the $400 million Elysium project (which was subsequently acquired by AV Jennings) and the $210 million Noosa Sanctuary Resort, which was acquired out of receivership by Melbourne’s RACV in November.

In late 2008 property developer Petrac had two Noosa projects placed in receivership – the $200 million North Shore Resort and the Beach Road Holiday Homes project.

Queensland-based bank Suncorp is the major lender to the Viridian development.