Gold Coast developer Raptis Group returns to ASX after suspension

The listed Raptis Group – not to be confused with the development company of the same name – has returned to the ASX after an embarrassing suspension.

THE listed Raptis Group – not to be confused with the development company of the same name – has returned to the ASX after an embarrassing suspension.

However, the lifting of the suspension came nearly two weeks after the company, headed up by veteran Gold Coast developer Jim Raptis, flagged it would be back.

On October 2 the ASX announced it had suspended the company from the market platform after it failed to lodge its audited full-year accounts by September 30.

The company’s preliminary final report was published on September 1 and showed a profit of $53,111 for FY20 – down 8 per cent on the previous period.

Raptis Group bought the management rights to Waterpoint Residences and then onsold them to another party for a profit.

MORE BUSINESS NEWS

Coast company's freak gain amid covid pain

Sunset Strip Holiday Lodge in Coolangatta knocked down to make way for luxury beach homes

Apartment sales 'set to surge' on Gold Coast

Raptis said the error in lodging its accounts was due to it being under the impression it had until October 31.

“The ASX have (sic) informed the company that a temporary suspension of trading is appropriate in the circumstances, and will be lifted when the report is lodged,” it said last month.

Raptis said it would lodge the audited accounts by the end of October.

On Friday the ASX finally announced the company’s suspension was lifted after it got around to lodging its final annual report on Thursday.

Veteran developer Jim Raptis.

Raptis Group has indicated its profit for the first half of FY21 will be a considerable improvement on the past thanks to a transaction involving the sale of the management rights to Waterpoint Residences in Biggera Waters.

This involved the Raptis family selling the management rights to the project to the listed company the family controls for $6.01 million.

Those rights were then onsold by the listed entity to a management rights operator for a surplus (after costs) of $1.845 million - two thirds of which went to the Raptis family and the remaining portion to the listed entity.

That sum of $461,275 gets added to the company’s bottom line for the first-half results.

The company’s independent expert’s report found the arrangement fair and reasonable and a general meeting of members approved the payment of a commission to the Raptis family.

[e-mail]