Gold Coast development: Changfa Investments fined for late contractor payment over Hope Island Lyra development

Construction has barely begun at this multi million-dollar boutique project in the Gold Coast’s north, but the developer has already been fined for not paying a contractor on time.

Lyra Hope Island.

CONSTRUCTION has barely begun on the Lyra project at Hope Island, but the developer has already been fined for not paying a contractor on time.

Developer Changfa Investments, which shares its registered address with a Sydney-based Chinese toy distributor, was fined $2611 for not paying Sunshine Coast company Fencepac Commercial after being ordered to by the building regulator.

The developer eventually paid the contractor the $37,762 that was owing, three weeks after the decision.

Earlier this year, Changfa’s agents said they had sold $10 million of the waterfront Marina Quays Boulevarde properties in the project’s first stage, in which land prices started at $593,000 and townhouses were priced from $498,000.

Lyra Hope Island.

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Changfa is an Australian arm of Jiangsu Changfa Industrial Group, which has interests in the manufacturing of agricultural, refrigeration and military equipment and is based in Changzhou city in China’s Jiangsu province.

It bought the approved Lyra development site from listed Broadbeach developer Villa World for $6.8 million in June 2018 — a year after entering the Australian property market with a $57.5 million commercial property buy in the Sydney suburb of Leichhardt.

It shares a director, Zhimin “Robert” Xu, and a registered address, with a company called Toyvision, which operates toy and craft distribution business Mars Vision.

The Lyra development at Hope Island. Photo: Supplied

Mars Vision sells bulk craft supplies and toy dinosaurs as well as knitting yarn and artificial flowers.

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The Bulletin contacted Mr Xu through the toy business yesterday.

He declined to answer questions about the fine or why the contractor was paid late but said the development was going ahead as planned.

“The first stage has been sold out and the second stage has started well,” he said.

“It’s all going well.”

Lyra Hope Island.

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Changfa was the first entity in Queensland to be fined under new building industry laws which can penalise developers and builders for not paying with five days of an adjudication.

Hutchinson Builders has been appointed to the project, which has been planned for completion over four stages.

Hutchies declined to say whether or not Changfa’s payment problem would change the way they dealt with the developer.

“We don’t disclose any arrangements we have with current clients but we’re excited to be working with Changfa on this project,” the builder said in a statement.

“Hutchies has been involved in a few other projects at Hope Island already such as Cova for Frasers Property so this job fits well into our Gold Coast capability.”

Lyra Hope Island.

Mr Xu said Changfa was looking for more opportunities on the Gold Coast.

QBCC Commissioner, Brett Bassett, said that under new laws, adjudicated decisions were

easier to lodge, were determined faster, and the resulting decisions mattered.

“This is the first time we have used this power but we will not hesitate to use it again if

workers and suppliers are not being paid on time for the goods and services they provide,”

Mr Bassett said.

Changfa signed a contract directly with the fencing contractor in November last year, but subsequently disputed the payment.

Fencepac applied to have the dispute referred to an independent adjudication hearing, which found in its favour.