York Properties says it plans to complete Midwater Main Beach after Tomkins departs build site

Developers of a stalled 39-floor tower have revealed how the project could be completed after its builder quit. Read why buyers in the project are not impressed

Developers of a stalled 39-floor tower say they will complete the build themselves – after finding out “financial requirements” and despite rejecting a contract termination from the original builder.

Work on the $100 million Midwater Main Beach tower has been on hold for more than two weeks amid a payment dispute between builder Tomkins and developer York Property Holdings, part of the Heran Group.

The dispute erupted when the developer locked the site’s main access gates with workers inside, sparking a “disturbance” which led to police being called.

Buyers in the 119-apartment project, who signed up in 2021, fear their contracts will be crashed by the developer, which will be able to resell them at higher prices.

York has declined multiple opportunities to rule out using sunset clauses on the pre-sale contracts, which would allow them to legally terminate them if construction is not completed by early next year.

Builders collecting tools and equipment, being watched by security, and leaving the Midwater building site at Main Beach. Picture Glenn Hampson

A statement from Tomkins this week said it had terminated its contract for Midwater – but the developer has rejected the termination.

In a note to buyers via sales agent Avanti Marketing, the developer said it had rejected “Tomkins’ attempt to terminate the contract”.

The note said York had “issued a formal notice to Tomkins” transferring completion of the contracted work.

”(This) allows York Properties to commence taking steps to have the works resumed and completed,” it said.

The developer said it would engage independent quantity surveyors to “provide a detailed understanding of the financial requirements moving forward”.

“York Properties will also be reaching out to the existing contractors to discuss their respective costs for completing the project,” it said.

“This information will be instrumental in enabling the future builder to tender the remaining work with greater accuracy.”

Police were called to the Tomkins building site at Midwater Main Beach on the Gold Coast, September 3, 2024.

Heran Group holds its own Queensland builder licence for maximum annual revenue of $60 million to $120 million, via the company Heran Construction No 1.

One buyer, who fears losing his family’s apartment over the delay, said the departure of Tomkins was a huge blow.

“It’s extremely disappointing,” he said.

“We’ve been waiting a long time already and now there’s more uncertainty.

“There’s half a building just sitting there and there are questions over the quality – is it going to be up to scratch in terms of deterioration and exposure to the elements?

“If Heran does take it over, will they be going back to buyers for more money or will they just cancel the contracts? It’s crazy.”