Gold Coast Spirit tower build back on track after clampdown on foreign investment in China

THE $1.3 billion Spirit super tower development in Surfers Paradise is back on track after it was clouded by a clampdown on foreign investment by the Chinese Government.

THE $1.3 billion Spirit super tower development in Surfers Paradise is back on track with consultants paid and a tender for construction set to be issued, according to the project’s marketer.

Spirit, a 479-unit project by Forise Investment Australia, part of Chinese mega-company Fu Hua Holdings, has been under a cloud due to a clampdown on foreign investment by the Chinese Government.

Forise Holdings' $1.2 billion Spirit tower will rise 300 metres above the Gold Coast when it's completed, making it Australia's third tallest residential tower. Artist’s Impression.

Exacerbating the crisis is a devastating crash of China’s peer-to-peer or “P2P” lending system, which has seen thousands of companies collapse and individuals lose their savings in a failed system that holds up to $AU300 billion in outstanding loans.

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The Bulletin understands Fu Hua has lost as much as $400 million in the P2P collapse.

Yesterday, Ray White Projects managing director Julian Sutherland said the cash tap had been turned on again.

Luxury living unrivalled anywhere in Australia and benchmarked against some of the world’s best residential towers is the promise for the Gold Coast’s new super tower, Spirit, which was officially launched to the market on Friday, July 6.

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“All the consultants that were overdue have been paid, so everyone has been paid now, we (Ray White) even got paid commission in advance,” he said.

“I believe the P2P issue in China has virtually resolved itself.”

Mr Sutherland said the agents were back to selling and had sold two units to a buyer from the United Arab Emirates for about $6 million.

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“Everything seems to have come back to normal. Initially we did not get paid our commission, they were a bit late, but we got paid in a whole heap last week, three weeks before they were due so it’s good news.”

Mr Sutherland said the next step will be for a tender for construction of the tower to be issued.

“The next phase now is to look at going out and sourcing a builder.”

Spirit will include 2700sq m of residents’ facilities over three floors, including pools, bars, a cocktail lounge, banquet room and an extravagant wine and champagne cellar. Panoramic views from the rooftop will stretch some 52kms.

Retail services will be located on levels one to three.