Descon Group collapse: Waverly Residences tower to be sold by Ray White Group

A Gold Coast tower left incomplete by the collapse of builder Descon Group, is being sold by receivers after buyers contracts were torn up. FIND OUT MORE

A Gold Coast tower left unfinished by the collapse of builder Descon Group, is being sold by receivers.

The eight-storey Waverly Residences, put forward by developer Busikon and linked to Descon boss Danny Issac, was 90 per cent completed when Descon fell into liquidation on May 1.

Buskinon’s financial backers have taken control of the project in the heart of Southport, and appointed Ray White Special Projects to sell the 60-unit build on the corner of Waverley and Andrews streets.

Contracts for the project were torn up in September, with deposits returned to buyers.

The Waverley Residences tower, incomplete since the collapse of Descon Group, will be sold by Ray White Group. Picture: Supplied

Ray White agent Mark Creevey said he expected an expression of interest campaign, which would run until November 7 and attract local and international buyers who would have to complete the building.

He said it was a “unique opportunity” for a buyer.

“We are expecting strong interest from those looking to finish the building, strata and sell the apartments, plus those interested in retaining the building as a rental asset,” he said.

“We have a lot of buyers who are keen to lock in the long-term growth of the Gold Coast, but there are very limited buying opportunities of this nature and scale”.

The tower has a mixture of units, including 14 one-bedroom, 32 two-bedroom, and 14 three-bedroom units.

Danny Isaac

A Ray White statement explained how it had been tapped to sell the site.

“Busikon engaged Descon Group Australia Pty Ltd (Descon) as the contractor to deliver The Waverley Residences,” the statement reads.

“Descon has completed a significant proportion of the development, circa 90 per cent, before entering liquidation on 1 May 2024.

“Descon is unable to complete construction (and) Busikon’s lender for this development, has exercised their rights under their security and appointed the receivers to Busikon which includes taking control of this development and taking it to market.”

Eliza Parker was one of the residences whose contract was torn up. Picture, John Gass

It comes amid strong sales in Southport real estate ahead of the Gold Coast City Council developing a masterplan of the central business district.

Azzura Group boss Robert Badalotti has reported more than $100m in sales in one month on the second stage of his Imperial Square development, the 40-level Monarch Place.

Meanwhile, a giant 4400 sqm parcel, once owned by INXS’ Michael Hutchence, sold more than $15m.

Southport’s property market remains red hot Picture: Supplied

The site, fronting Nerang, Young and Garden streets and has sat empty for 35 years, is expected to be redeveloped by its own owner, with at least one tower.

Ray White chief economist Nerida Conisbee said Southport remained a sought-after location for buyers.

“Gold Coast houses and units mean prices have now well exceeded previous peaks, at $840,000 for units and $1.1m for houses, while rents are also now seeing record increases in regional Queensland. Construction costs have been rising for some time which has limited much new development,” she said.

“Supply issues will continue as construction industry insolvencies continue to rise.

“Southport actually recorded the second highest volume of sales of properties under $750,000 in the last year with 973 sales.

“Southport is still one of the most affordable suburbs on the Gold Coast.”

Originally published as Descon Group collapse: Waverly Residences tower to be sold by Ray White Group