Surfers Paradise Jewel towers by China’s Yuhu Group hit controversy
THE shimmering Jewel towers are destined to be a stunning landmark on the Gold Coast beachfront — but what is going wrong so close to completion? Speculation abounds.
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JUST six weeks ago the triple-tower Jewel development, rising spectacularly at the Surfers Paradise beach-edge, achieved a milestone: it touched the sky.
The ambitious $1 billion-plus build, which started with a concrete pour in mid-2016, had topped out, as they say in the industry.
The central tower with a 169-room hotel had hit its maximum height of 47 storeys, flanked by tower one at 41 and tower three at 34.
At the lavish ceremony attended by city leaders and dignitaries, a four-metre pandanus palm tree was lifted to the rooftop with a giant sign noting: “Jewel touches the sky.”
Bigwigs attended from Jewel’s Chinese owners Yuhu Group Australia, including founder Xiangmo Huang’s son Jimmy Huang, aged in his mid-20s.
He beamed, saying it was a project “we can all be proud of” and heaped praise on major builder Multiplex.
Multiplex regional managing director Graham Cottam was equally complimentary, saying it was a result of passion and hard work. He thanked Yuhu Group “for working with us”.
Fast forward to this week and Jewel might still be “touching the sky” but the atmosphere on site is crashing down to earth.
Workers and contractors have walked off amid uncertainty about their futures on a job many anticipated still had nine months to go.
Construction union CFMEU has held multiple, drawn-out meetings. Rumours abound among the 900-strong workforce: that Multiplex is being sacked; that hundreds of jobs will be axed; that cheaper labour from elsewhere will be brought in; that work will stop altogether; that apartment sales are slow and money is too tight to finish it off to the standards proposed.
Yuhu Group statements, denying all of the above, have explained designs of lower podium levels are still to be finalised, will be pushed back in the “construction schedule” and they want Jewel completed to “the highest of international standards”.
Yuhu muddied the waters by saying there would be new tender opportunities for the work, however Multiplex would remain the “major project partner”.
JEWEL DRAMA A BIG ‘MISUNDERSTANDING’
Multiplex has been biting its tongue all week and not commenting.
For some observers, the difficulty finishing the Jewel off is no surprise — some are impressed Multiplex has pulled off what it has so far.
Jewel marketing material describes it as an “avante garde” and “truly iconic piece of architecture to rival some of the grandest structures in the world”.
But a bemused source close to the project says another way to describe it is “one of the most over-specced buildings ever designed”.
“It’s a classic architect’s picnic,” he said of the shimmering “crystalline” shape that is supposed to reflect the smoky quartz crystals forged in the city’s volcanic past.
“It’s not straight up and down. They come up with this weird and wonderful design and then it’s up to other people to figure out how to actually build it. It was always going to be difficult to build.”
The source said Yuhu Group’s public statements did not seem logical, coming after resetting prices on apartments several months ago. The Bulletin revealed Yuhu Group shaved about $104,000 off the price of two-bedroom, two-bathroom apartments, on sale from $1.3 million. That was down from $1.43 million when sales were launched by the previous Chinese owner, Wanda Ridong, in 2015.
Entry-level apartments had reportedly increased from $675,000 to $799,000 for a one-bedder with a study, largely because many lower-priced one-bedroom apartments had already sold.
Yuhu Group’s spokespeople maintain the project is not dependent on sales of the 512 apartments, which at last count stood at around 90 — or 18 per cent — sold.
But there has been no clarification if all are contracted and how many are just expressions of interest.
The source says the prices are largely only affordable to a Sydney or overseas market and the cost of an international marketing campaign is prohibitive.
He believes Yuhu is looking to make savings on the podium levels of the project which would be the showpiece entrances and public amenities. Not that many would notice.
“To discern the difference between a six-star finish and a four-star one is something only an artist will be able to tell,’’ the source said.
“But I don’t buy into this bulls--- that they are going to enhance it or upscale it. You don’t drop the prices, sack the builder and redesign it, saying you are going to make it even better. That breaks the laws of property economics. It doesn’t work that way.”
A Jewel contractor says he has seen paperwork calling for work on the hotel tower to be completed five to seven floors above the hotel.
His theory is Yuhu Group will launch the hotel but hold off on completing the apartments while waiting for the market to pick up and more sales to kick in.
“And they have no chance of finishing mid-2019 as planned if the tradies aren’t working on it right now. Either they are dreaming or they actually have no intention of finishing it and the intention is opening a hotel (initially).
“They will continue to try and sell apartments and once they get enough, they will continue on with the development once they see some more money coming through. That’s my theory.”
Yuhu Group took the extraordinary step this week to publicly state it “has reconfirmed its commitment to delivering the $1 billion Jewel”.
“Ultimately all necessary work will be carried out to finish what will be a magnificent new asset for the Gold Coast,” Yuhu Group’s statement said.
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