Developer Jim Raptis goes for medium-rise over high-rise in market return with Springwood project

FAR from the multi-million dollar Gold Coast supertowers for which it is best known, the Raptis Group has started its latest revival with a far more modest project.

The Serenity@Springwood project by the Raptis Group

FAR from the multi-million dollar Gold Coast supertowers for which it is best known, the Raptis Group has started its latest revival with a far more modest project.

The group is marketing a 57-townhouse project at Springwood on Brisbane’s southern outskirts.

Serenity @ Springwood is a two-storey development of three and four-bedroom townhouses and with a pool and covered barbecue area.

Serenity’s four-bedrrom townhouse are being sold off the plan and start at $449,000.

They are tipped to rent at between $495 and $510.

The 1.49ha Springwood site at 105 Barbaralla Drive was bought for $4.95 million in June last year through Barbaralla Developments.

The Serenity@Springwood project by the Raptis Group.

It comes as veteran Coast developer Jim Raptis and his Raptis Group, which resumed trading on the Australian Stock Exchange in December, after an eight-year suspension, has posted a $55,126 profit for the year to June 30.

Mr Raptis said the Springwood project was released to the market in July “and the success of the marketing campaign to date indicates strong market acceptance of the development offering”.

Mr Raptis said construction of Serenity is expected to be completed by March or April.

The Raptis Group, first listed in 1986, was known for developing landmark Glitter Strip high-rises including The Moroccan, The Phoenician and Bel Air in the 1990s and later the $400 million Chevron Renaissance towers and $700 million Southport Central.

Beteran developer Jim Raptis

Raptis Group had been suspended from official ASX quotation since September 2008, when it struck financial problems during early construction of the third tower at Southport Central.

It launched the Hilton Hotel but the project was taken over by financier ANZ.

The Raptis Group’s first meltdown, in 1991, left investors owed $65 million but the company worked its way out of trouble after striking a deal in which creditors recovered just 3.5¢ in the dollar.

The Raptis Group was in dire straits again in 2008 under the weight of almost $1 billion in debt but again survived, this time through a deed of company arrangement struck with creditors in 2009.

Its latest rise was stalled during a decade-long stoush with the Australian Taxation Office in which the group managed to reduce a $30 million tax bill to $6.

The company’s latest revival was aided by the issue last November of 10 million shares to entities associated with Mr Raptis.

There has been further help since, with the Raptis Group telling the ASX this week that by June 30 entities associated with Mr Raptis had advanced it $202,059.

It said the amount is unsecured, at a nil interest rate and due to be repaid from the sale of the Springwood townhouse project before June 30 next year.

The group said entities associated with Mr Raptis will provide development and administrative personnel, office facilities and associated overhead costs at no cost to the group until that date.

Mr Raptis previously said high rises are not on the agenda for Raptis Group and that the company will take a conservative approach to all new projects.

It is not likely to face tax bills for some time — it ended the 2015-16 year with more than $28 million in accumulated losses.