Ex-Ralan block in Surfers Paradise hits market pitched at home buyers and developers

One of the Gold Coast’s prime development sites has been put up for sale with approval for a massive two-tower development.

Receivers to Sydney developer William O’Dwyer’s failed Ralan group have put a whole city block – approved for two towers – to the market.

RECEIVERS to Sydney developer William O’Dwyer’s failed Ralan group have put a whole city block – approved for two towers – to the market.

The 1.14ha Sapphire site is bound by Norfolk, Pine, Oak and Ferny avenues at Budds Beach on the fringe of Surfers Paradise and was acquired by Ralan for $19 million in 2015.

Knight Frank’s Mark Witheriff and James Branch are marketing the site in a tender campaign closing on November 28.

It is approved for a development known as Sapphire, which would have comprised 1000 apartments across two apartment buildings (71 and 33 storeys) as well as a cafe, community centre, restaurant, shop and takeaway food premises.

An artist impressions of the proposed Sapphire development earmarked for a Surfers Paradise site. Supplied by Gold Coast City Council.

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The current site consists of a number of lots with some vacant and others occupied by single-level and double-storey homes.

Mr Witheriff said the sale offering could be bought in one line for a large-scale development, such as a hotel or residential project, or in parts.

“The intent of this offering is to provide a broad range of opportunities within the city block and recognise both the immediate development potential of the various properties and its highly desirable and liveable location,” he said.

“The existing dwellings offer both owner-occupiers and potential investors various opportunities to acquire either one or multiple properties, underpinned by significant future development potential, including both residential and commercial.

Receivers to Sydney developer William O’Dwyer’s failed Ralan group have put a whole city block – approved for two towers – to the market.

RALAN FAILED AFTER SCORES OF RUBY PROJECT CONTRACTS DIDN'T SETTLE

“We expect some buyers may consider acquiring a grouping of lots attracted by the future development potential in the precinct.”

Development options could include hotel, residential, retail and commercial uses, he said.

The Sapphire development was to be a ‘six star’ project worth more than $1 billion.

More than $70 million in deposits had been received and 397 contracts exchanged for the Sapphire development prior to the administrators being appointed to the Ralan groups 58 companies in July.

Ralan’s business model, where apartment buyers were promised interest returns of 15 per cent on their investment, was described as a “Ponzi-style program”.

William O'Dwyer’s Ralan group of companies went into administration in July.

Investors in the group’s Gold Coast developments, which include the completed Ruby tower, were warned earlier this year administrator Said Jahani to expect a poor outcome after it was found much of the $277 million in missing deposit funds had gone into covering losses on previous projects and for funding interest payments for previous buyers as new buyers tipped in.