Bargain hunters swoop on collapsed property projects

A few bright spots are appearing in Queensland’s gloomy property sector, with bargain hunters set to swoop on several of the projects that were brought down by the credit crunch.

A few bright spots are appearing in Queensland’s gloomy property sector, with bargain hunters set to swoop on several of the projects that were brought down by the credit crunch.

Gold Coast developer Raptis Group, which halted trade in its shares in early September after the parts of its $700 million Southport Central was placed in receivership, appears to be getting on a firmer footing.

The group has several buyers interested in acquiring its Sheraton Mirage Resort on the Gold Coast, although a price is yet to be set.

Meanwhile, receiver KordaMentha has restarted work at Raptis’ Southport Central development and expects to have it completed by early 2009. According to The Australian Financial Review, KordaMentha already has a number of presales in place and is hopeful of selling the remaining apartments and strata space to a large investor or funds management group.

Construction giant Brookfield Multiplex – which has recently cut jobs itself as a result of the crisis – is helping Raptis complete the $700 million Hilton Surfers Paradise project, which the Raptis Group searches for a joint venture partner for the project.

Buyers are also picking over the assets of collapsed Gold Coast financial services company Asset Loans, which collapsed in September. The company’s administrators are reportedly close to selling the company’s Bowen Marina to Melbourne developer Prudentia.

The price is said to be around $4.5 million. While that is a long way from the $10 million Prudentia offered earlier this year, it is not a bad result given the fact that conditions are very, very different.

Related stories:

• Credit crunch claims Queensland finance company Asset Loans Group
• Gold Coast property developer Raptis Group on the brink