Jim Raptis: Sites home to $250m of Gold Coast high-rise developments frozen by Federal Court

About $250 million of development projects are under way on land frozen by the Federal Court as it chases $109.7m from Jim Raptis, members of his family and other entities they allege are linked to him.

Andrew Potts

@GCS_Pottsy

3 min read

October 8, 2021 - 5:30AM

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ABOUT $250m of development projects are under way on Raptis-owned land frozen by the Federal Court.

The Australian Tax Office (ATO) is seeking $109.7m from Jim Raptis, members of his family and other entities they allege are linked to him.

The court has frozen assets owned by Mr Raptis and a series of companies that are associated with him, some of which control properties across the Gold Coast.

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Jim Raptis. Picture Glenn Hampon

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The freeze came as part of an ATO investigations into “what appear to be tax avoidance arrangements in respect of Mr Raptis, members of his immediate family, and entities with which he is associated”.

According to the court filing, the ATO alleges Mr Raptis has a long-time association with accountant Vanda Gould, a convicted criminal accountant.

The court documents said Mr Gould was “was the subject of compliance investigations by the ATO in relation to tax avoidance arrangements involving offshore service providers providing services to Australian taxpayers associated with Mr Gould”.

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A freeze was placed on $23.8m of assets held by companies Hanslow Holdings, Philadelphia Developments, Rosea, HS5, HS6, Education Corporation of Australia, Kyros Stage 3, and Kiedis, of which Mr Raptis’ son Evan Raptis also is part owner.

Philadelphia Developments owns land at 3550-2552 Main Beach Parade, worth more than $9.17m, which has been earmarked for Raptis’ $160m, 30-storey Pearl tower.

More than 40 per cent of its 80 units have already sold off the plan, though construction is yet to begin.

Jim Raptis, his wife Helen and Evan Raptis beneficially own the assets held by Philadelphia, with an equity of $3.27m, the court documents reveal.

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Artist impression of The Gallery Residences

The three are also listed as owning the sole asset owned by Kyros – land on Broadbeach’s Second Ave where Jim and Evan Raptis have built their 21-storey $90m The Gallery Residences tower.

The project was filed with the Gold Coast City Council through the company Second Avenue Development Management, which listed Jim Raptis as its sole director.

The younger Mr Raptis was named in the development application as the project’s joint managing director.

Second Avenue Development Management is not named in the court orders.

The tower began construction in January 2020 and had been expected to open by Christmas that year.

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Project Manager Alan Irwin, Joint Managing Director Evan Raptis, and Operations Manager Graeme Fenton at the site of The Gallery. Picture Glenn Hampson

However it was one of a handful of developments which paused construction during the Covid-19 pandemic and its construction has only been completed in recent weeks.

Court documents reveal Education Corporation’s assets are four units in Broadbeach and Surfers Paradise at Raptis-built towers.

They include:

* Two units in the Phoenician Building at Broadbeach worth $405,000 and $425,000 respectively;

* A unit at the Moroccan on Surfers Paradise’s Elkhorn Ave worth $425,000; and

* A unit in the Skyline Central tower at the Chevron Renaissance towers.

Court documents state that Jim, Helen and Evan Raptis own a 50 per cent beneficial interest in the Educational Gold Trust (EGT), and by extension, the assets held by the trust, along with disgraced accountant Vanda Gould.

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Company HS5’s assets are all owned by Jim, Helen and Evan Raptis and include three units at Biggera Waters Harbour Side Court development. while H65 owns a single lot at the same development.

The value of the land and the equity in it held by the Raptis family are unknown, according to the court documents.

THE RAPTIS JOURNEY

Jim Raptis pictured in 1987.

1974: Jim Raptis, already established as a developer in Sydney, moves to the Gold Coast.

1979: Builds St Tropez, Surfers Paradise.

1980: Builds Copacabana, Surfers Paradise.

1981: Builds Monte Carlo, Surfers Paradise.

1982: Builds Biarritz tower in Surfers Paradise.

1986: Raptis Group listed on the ASX.

1989: Builds Raptis Plaza, Surfers Paradise and The Corporate Centre, Bundall.

1991: De-listed from the ASX after owing investors $65m.

The company struck a deal which saw creditors recover just 3.5 cents in the dollar.

1992: Raptis Group relisted on ASX.

1997: Builds Phoenician, Broadbeach.

2001: Builds Chevron Renaissance, Surfers Paradise.

2006: Begins construction of Southport Central towers.

2008: Delisted again with the company owing $1bn in debts following the global financial crisis. The group launched the Hilton Hotel but the project was taken over by financier ANZ.

2014-2015: Two Jim Raptis companies used to develop the Sapphire building at Labrador go into liquidation with combined debts of $11.03m.

2015: Raptis Group resumes trading on the ASX.

2019: Raptis won a legal battle to keep his Queensland builder licence after a Supreme Court judge ruled in his favour against the state’s construction regulator.

2020: Builds The Gallery Residences, Broadbeach.

2021: Federal Court freezes more than $80m in Raptis assets while chasing $109.7m in unpaid taxes.