ASF Group seeks “suitable, equitable” solution to $12m loss on Gold Coast casino resort at the Spit

ASF Group posted a $19.53 million loss for the last financial year, attributing most of it to the axed Gold Coast integrated resort and casino project at The Spit. Its annual report has revealed what it’s doing to recoup that loss from the Government.

ASF is planning a major road and public space project at Castle Green in London.

CHINESE investment group ASF posted a $19.53 million loss for the last financial year, attributing most of it to the axed Gold Coast integrated resort and casino project at The Spit.

In the company’s annual report released yesterday, chairwoman Min Yang described FY17 as “filled with challenges and growth opportunities”.

The report said the $12.09 million cost of the sunken resort development had been “fully written-off”.

“Over the coming months, ASF is undertaking appropriate next steps in seeking a suitable and equitable conclusion to the matter and is in discussion with the Queensland State Government,” it said.

ASF chairwoman Min Yang. Photo: Richard Gosling

The group has not ruled out taking legal action to recoup its losses, two years after the Government announced an agreement for the five-hectare site south of Sea World.

The after-tax losses for 2016-17 also included expenses of $2.59 million for its UK projects and followed a $15.25 million loss the previous year.

The group reported a sharp decrease in net assets to $4.69 million, down from $12.45 million the previous year, predominantly due to the Gold Coast project being lost “as a result of the unilateral termination of the process by the Queensland Government”.

The ASX-listed group endured a horror start to the 2017-18 financial year, with the $3.5 billion casino plan scuttled in August — a fortnight before it lost a multibillion-dollar bid to develop a 10ha site at London’s Royal Docks.

ASF director Louis Chien and designer Dean LaVigne with the now-defunct plans for the five-tower, $3 billion integrated Resort on The Spit. Photo: David Clark

Despite the setbacks, Ms Yang said the group would “take the opportunity to focus on a full pipeline of exciting and upcoming business endeavours across other geographies”.

“We anticipate 2018 will be a strong and profitable year for the Group,” she wrote.

“There are encouraging early signs that our strong progress is proving not only realistic and achievable, but now well within reach.”

The report said ASF’s two-phased project, The Peninsula Hope Island, was “almost sold out” and that the group continued to grow its Dawson West coal project in the Bowen Basin.

ASF remains in discussions to develop a major road tunnel at Castle Green in the English capital. The group this month announced their involvement in the development of a boutique apartment tower planned for the Esplanade in Surfers Paradise.

The $70 million Au Surfers Paradise is being developed by Paradise Development Holding, which is incorporated in the Virgin ­Islands and has ASF founder and director David Fang as a director.

ASF describes itself as a management consultant to Paradise Development.

ASF gained development approval for The Au Southport, last year but has not given a starting date.