Apartments in Raptis Pearl development to settle from next week despite legal scuffles
Resilient developer Raptis Group is set to settle on apartments in its 30-storey Pearl tower from next week, despite battling a flurry of court cases involving alleged defects, a personal injury, deregistration of one of its construction companies and an unresolved $109 million tax case.
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Resilient developer Raptis Group is set to settle on apartments in its 30-storey Pearl tower from next week, despite battling a flurry of court cases involving alleged defects, a personal injury, deregistration of one of its construction companies and an unresolved $109 million tax case.
The group, headed by veteran Gold Coast developer Jim Raptis, faced wind-up action against related company Ezra Constructions – builder of Pearl – in March.
Sydney formwork company Fabquip applied to liquidate Ezra over five invoices totalling $229,774 it claimed between 2022 and 2023, according to documents lodged in the Federal Court.
Bundall-based Get Directed Traffic Control & Labour Hire joined the action as supporting creditor in the matter, which settled out of court and was dismissed on March 13.
Mr Raptis this week said the wind-up action had been dismissed because it was “unfounded”.
His group was forced to make an urgent court application just weeks later after realising its other licensed construction company had been deregistered by ASIC.
Garnet Constructions was struck off on March 30 for not paying its registration fees.
In an affidavit to the Supreme Court, lawyer Andrew Johnson said staff at Garnet, a subsidiary of the ASX-listed Raptis Group, did not realise the fees hadn’t been paid until it had been deregistered.
Mr Johnson said Garnet needed to regain its registration so it could keep its Queensland building licence, so it could continue “investigation and rectification of alleged defects”, including internal water leaks, on townhouses it built at Springwood.
Mr Johnson’s affidavit said Garnet had applied to the Queensland Civil and Administrative Tribunal to challenge a direction from the QBCC to rectify defective work.
ASX filings show the group made a $466,283 profit after selling the Springwood units for $25.5 million in 2017.
Meanwhile, the ASX-listed Raptis arm has allowed for $100,000 in its budget for an unspecified personal injury claim.
In its quarterly activity report published to the market on Monday, Raptis Group said the $100,000 represented the potential insurance excess for the incident.
“There is a significant level of uncertainty in regard to this matter, however it is not anticipated to be more than the insurance excess,” the report said.
“It is part of an incomplete negotiation and we are working with our advisers to settle the matter in an appropriate manner.”
Mr Raptis said “a person claimed injury from using the driveway” of one of his completed projects.
Assets of Mr Raptis, 77, some family members and a number of his companies were frozen by the Federal Court almost three years ago amid a $109m tax probe which remains unresolved.
The case has been adjourned 24 times and is next listed for hearing in August.
The asset freeze has not stopped the developer from forging ahead with major projects including Pearl, which was initially slated for completion by August 2022.
This week, Mr Raptis said settlements of the apartments would happen from next week.
He declined to detail how hefty construction cost increases had impacted the project, originally costed at $160 million.
“Some costs have increased at Pearl, and these costs have been managed,” he said.
The Main Beach Pde site made headlines after heavy parts of an out-of-control crane were flung to the ground in 2022.
Raptis has also started work on Sterling at Broadbeach, which was originally set to be 43 floors but was slashed to 26 last year.
Construction has commenced, with sales brochures advertising completion in the second half of 2025.
Mr Raptis said construction was “progressing well and sales are exceeding expectations”.
“The shortage of stock across all markets, housing, land and apartments will underpin the market for the next three to five years,” he said.
“The concerns remain regarding the lack of rental accommodation on the Gold Coast.”
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Originally published as Apartments in Raptis Pearl development to settle from next week despite legal scuffles
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