Gold Coast development: Aland Group deal to sell Southport site for $19m to Virtical Group fails

There's been a huge twist in a deal to sell a four-tower development site for $19m, just two weeks after it was declared to be "in tatters".  FIND OUT WHAT CHANGED.

The $19 million sale of a four-tower Southport development site, in ruins two weeks ago, has been revived and the money has changed hands.

The 1.1ha property, which sits between Nerang St and St Hildas school, was put under contract in May to Sydney’s Virtical group.

Two weeks ago seller Aland, when the unconditional sale ‘failed to complete’, put the land back on the market.

It was set to be auctioned by CBRE on December 7.

The settlement went ahead on Monday (Nov. 27). Virtical yesterday said it had been ‘negotiating aspects of the deal’.

Artist impression of the Aland towers proposed for Southport. Picture: Supplied

“There were initial works on the site, which were agreed with Aland, and they have recommenced,” a spokesperson said.

“There were a few technical issues to be resolved before settlement, such as easements, and they have been resolved to allow settlement to take place.”

The property, which includes frontages to High and Cougal streets, was bought by Aland for $10.5 million five years ago and subsequently approved for four curvaceous towers, the tallest 71 floors.

Virtical says the project will deliver 1019 apartments and 137 build-to-rent units.

It yesterday said the project would offer a great opportunity for owner-occupiers to break into the fast-growing Gold Coast market.

The Sydney-based Virtical, as well as being a developer, owns hotels and motels in NSW and Victoria.

$19m four tower mega-development deal ‘in tatters’

A deal to sell a four-tower Southport development site for $19 million is in tatters and the land is back on the market.

The 1.1ha property, which sits between Nerang St and St Hildas school and is owned by Sydney’s Aland group, was put under contract in May.

The buyer was a subsidiary of another Sydney developer, the Mark Toma-headed Virtical group, which has major hospitality industry holdings.

Its contract on the land was unconditional.

Aland yesterday said the sale “failed to complete”.

Mr Toma could not be contacted – calls to his office were met with a message that the Virtical number was ‘out of service’.

Aland has elected to put the site back on the market via the agents who handled the earlier sale, CBRE’s Mark Witheriff and Daniel Doran.

It will be auctioned on December 7 and can be sold as a single block or as two lots.

Andrew Hrsto of Aland

The move comes as what is regarded as the best development site in Southport, the 1.38ha former Star of the Sea holding on Marine Pde, has been put on the market by its Chinese owner.

The Aland property, which includes frontages to High and Cougal streets, was bought for $10.5 million five years ago and subsequently approved for four curvaceous towers, the tallest 71 floors.

Aland founder Andrew Hrsto yesterday said he initially identified the site as a unique opportunity in a future growth centre.

He said his group, with 1300 homes being built in NSW and a further 6500 in the planning

The Aland site in Southport Picture: Supplied.

stages, chose to consolidate and offload the Queensland site.

“The strategy that compelled us to sell Southport remains unchanged.

“While this is an outstanding site for someone with an appetite for the Gold Coast, it no longer makes sense for us.

“We’re committed to our Western Sydney and central coast work and that’s where our focus is for the foreseeable future.”