Surfers Paradise: ‘Advanced negotiations’ on former Iluka and Spirit site

There are changes afoot at an absolute beachfront site which is set to signal a dramatic change for the Surfers Paradise location which was one going to be home to our tallest tower. DETAILS

The owner of the failed Spirit development is “negotiating” the future of the absolute beachfront Surfers Paradise site as it asks council for more time to redesign it.

The $1.2bn, 89-storey tower was approved under controversial circumstances almost a decade ago but the project failed to materialise and a concrete slab placed over the top of a 12-storey deep hole which was dug for the basement levels.

Now, Canford Estate Agents boss Roland Evans, who represents its owners confirmed “advanced negotiations” were underway for the site’s future.

Aerial of the Trickett Street, Surfers Paradise site which was previously home of the Iluka and the proposed site of the failed Spirit development. Picture: Supplied by Canford Estate Agents.

“They have a development application that allows for a building of up to 89 storeys and the works into the ground have already been done,” he said.

“There is a 45m diaphragm under there and the support posts are all driven into the rock.

“It makes sense that they would hold onto the envelope (of the building) and if they choose to reduce, they can do it without any complications.

“Right now we are in advanced negotiations with a group I can’t tell you about but at this time but we are hopeful the site will be redeveloped in the not too distant future.”

Canford‘s Roland Evans. Photo: Supplied

The site, formerly home to the Iluka tower has been sitting empty for more than six years.

It is owned by Macau casino operator Loi Keong Kuong who bought it from its original Chinese developer Forise, which had secured approval for Spirit.

The project was greenlit despite never going before the council’s planning committee, sparking furious comments from then-councillors who were upset they had not been given the chance to vote on the matter.

The approved tower was to have nearly 700 units and more than $120m was spent to dig the hole on the corner of Trickett St before the project came to a halt in June 2018.

Forise Holdings' $1.2 billion Spirit tower was to rise 89-storeys. Supplied

Forise sold the land to Mr Kuong in 2019, with the new owner later turning down a $90m offer on the site.

Now, an application has been made to the council to extend the approval of the development on the site.

In a letter to council, it is argued that the site will be developed but the design of the tower will likely require modification.

The tower was supposed to have Australia’s tallest pool Picture: Supplied by Forise

“The Covid-19 pandemic caused significant delays in the construction sector due to resource and workforce availability,” the letter reads.

“Ongoing rising construction and labour costs along with rising interest rates post-Covid-19 continue to cause significant financial challenges to the development industry more broadly, rending may existing approvals proceeding 2019 financially prohibitive.

“Throughout the Covid-19 pandemic and in the intervening years, the applicant has continued to review the proposed design against the changing market conditions in order to determine the highest and best use design for the site.

“The applicant is both personally committed and financially obligated to develop this site. “They remain excited by the site’s potential and their ability to deliver a dynamic and vibrant mixed-use development in the heart of Surfers Paradise.”

Originally published as Surfers Paradise: ‘Advanced negotiations’ on former Iluka and Spirit site