Raptis Group shareholders agree to buy $2.8m management rights from Raptis family

Shareholders of ASX-listed Raptis Group have agreed to pay its chairman Jim Raptis and wife Helen more than $2.8m for management rights in two key Gold Coast developments. 

Shareholders of ASX-listed Raptis Group have agreed to pay its chairman Jim Raptis and wife Helen more than $2.8m for management rights in two key Gold Coast developments. 

In an announcement to the ASX Thursday afternoon, Raptis Group confirmed it had acquired the management rights for two apartment towers, as well as a development management agreement.

The company’s latest half-year financial report showed it had $2.9m cash reserves.

The management rights cover completed The Gallery Residences in Broadbeach and the under-construction Pearl tower at Main Beach.

“Today’s resolution allows Raptis Group Limited to acquire management rights that will generate stable, low-risk income for the next 20 years," Mr Raptis said in the ASX announcement.

“Management rights are a sound, low-risk medium to long-term income strategy.

"We’re pleased with the overwhelming support the proposals received from shareholders.

“The consensus from shareholders gives us the confidence to consider similar income-generating assets into the future.”

In a note to shareholders last month, independent experts described the resolutions as ‘fair and reasonable’ for non-associated shareholders.

The company said more than 99 per cent of shareholders who voted were in favour of the proposals. Mr Raptis and his family, who are major shareholders, abstained from the vote.

Shareholders to vote on management rights deal

February 12: In an announcement to the ASX, Raptis Group called an extraordinary general meeting of shareholders to vote on whether to buy the rights to the $160m Pearl and $200m Gallery Residences developments from Mr Raptis and his wife Helen.

The couple will abstain from voting on the March 24 motion.

In its statement, Raptis said it was “seeking to acquire income producing investments in property management rights”.

“Management of The Gallery Residences, located at Broadbeach, a luxury high-rise building with long-term, holiday rentals and owner occupiers, and Pearl Main Beach (under construction) are being considered,” the statement said.

“Resolutions will be put forward at a General Meeting on March 24 for the company to acquire the management rights and associated assets for the two buildings for $2,813,218.

“The second proposal is for a Development Management Agreement for Pearl Main Beach.

“Non-associated shareholders will consider these resolutions to generate long term income and facilitate further opportunities for the listed entity.”

Raptis Group said the proposals had been in preparation since June 2021.

“It is a medium to long term strategy and as we go forward we will consider placing future management rights on our buildings into the public company’s portfolio,” Mr Raptis said in the statement.

“Additionally, if other management rights opportunities arise we would like to either purchase or participate in such opportunities.”

The statement said the acquisition of the management rights, on 25-year terms, would deliver “a stable revenue stream for Raptis Group”.

It said the remuneration for the Development Management Agreement would also represent a “growth strategy” for the group.

“The independent expert has described both resolutions as ‘fair and reasonable’ for non-associated shareholders,” the statement said.

Listed Raptis Group posted a $203,000 half-year profit for the half-year to December 31, while Mr Raptis’s private companies have more than $350m in projects under way.

Raptis Group profits down despite $250m in tower builds

February 12: Raptis development companies are working on $250m worth of beachside tower projects, but the riches are yet to flow to shareholders in the ASX-listed Raptis Group.

Filing its half-year results to the market, the Jim Raptis-chaired group revealed its sole income came from the unexpected resurrection of a long-dormant subsidiary company, which mysteriously paid the group $312,000.

The company revealed a profit of $203,265 for the six months to December 31, down from a 2020 half-year profit of $553,843.

Shareholders in Raptis Group include the Australian Government which, along with other creditors, accepted shares in lieu of hundreds of millions of dollars when the company crashed into administration during construction of the $700m Southport Central and The Hilton in Surfers Paradise.

Tradies of Raptis projects including Southport Central were owed at least $25m when the company crashed in 2008.

Raptis companies were in debt by more than $1bn at the time of the collapse, with tradies of one company alone owed $25m.

Shares in Raptis, selling for $1.24 at its peak in 2007, last traded at 3c, giving the once mega development group a market capitalisation of just $2.09m.

Mr Raptis has maintained the floundering listed entity has nothing to do with his successful private development companies, despite them sharing a logo, Surfers Paradise address, directorships and their portfolio of past projects.

Until recently, the listed entity also shared a website with the other Raptis companies.

Hilton Hotel under construction in 2007.

It has been an eventful half-year for Mr Raptis, who, along with wife Helen and son Evan, faces an $80m asset freeze, including the veteran developer’s $20m Paradise Waters mansion.

The freeze came as the ATO seeks $109.7m from Mr Raptis, members of his family and other entities they allege are linked to him.

Mr Raptis’ family members are not accused of wrongdoing, criminal or otherwise.

Through ASX reports since the company was relisted in 2015, Raptis shareholders have been repeatedly told the directors are “researching opportunities”.

The listed company’s only recent development, a 2018 Brisbane townhouse project, made $25.5m in revenue but only netted the group a $530,000 profit.

Despite an apparent dearth of opportunities for the public company, Mr Raptis’s private Raptis companies have had plenty.

Artist impression of Jim Raptis' new Broadbeach tower.

The Raptis logo is flying high above current projects Pearl Main Beach and The Gallery in Broadbeach, while The Sterling Broadbeach is due to start construction this year.

The projects are among the assets frozen in the government’s tax probe.

In its half-year results, listed Raptis Group said it had created two new subsidiaries to “investigate” build-to-rent opportunities.

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