Stalled apartment block for sale
THE decision to sell Park Beach's incomplete highrise development has raised hopes potential buyers will contract local trade companies to finish the work.
Initially proposed as a $13 million luxury apartment complex, the failed Simcorp Beaches development has sat dormant for a year-and-a-half after the Queensland developer entered voluntary administration, leaving considerable debt in the Coffs Coast building industry.
The receiver for the stalled nine-storey complex, PPB Brisbane, on behalf of the mortgagee, the Westpac Bank, has listed the building for sale with First National Real Estate Coffs Harbour.
Selling agent Barry Booth yesterday called for expressions of interest in the 36-unit complex.
"We have already had good response, inquiries from two construction companies contracted by investors to inspect the site, assess the structure and determine what rectification works are needed," Mr Booth said.
"Once it is finished this high-rise will complete the Park Beach oceanfront skyline.
"Situated between Beachfront and Pacific Towers it will offer the last chance to purchase a high-rise along Ocean Pde due to building height restrictions.
"There are three one-bed- room units, 16 two-bedroom units and 17 three-bedroom units, with the top floors including the roof-top penthouses which have ocean views.
Asked about the difficulty of selling a weathered building site with a tarnished reputation in a tough market, Mr Booth was optimistic.
"We listed and sold 14 of the 16 apartments in the unit block at 51-53 Ocean Pde for the vendor after that development went into receiv- ership last year," he said.
"Obviously, this sale is a lot more complex; whoever takes it on needs to determine whether due diligence has been taken in the construction and inspect the structure to assess what has been done and what remains to be done, but I'm sure it's a great investment for a savvy developer. It's 70% complete and the lower floors are just about finished internally."
Since work stopped in January last year the contentious development has been secured and manned by security.
A local company has now been contracted to clean-up the worksite for sale and an assessment is under way to determine whether there's a need to replace the worksite's rusted scaffolding. Applications to purchase the construction remain open until November 23.
Coffs Harbour's other controversial unit development, the yet-to-be completed Housing NSW site on Harbour Dr, is now the subject of a NSW Government investigation.
Sydney-based government contractor Perle Pty Ltd went to the wall in January, owing local trade companies $1.76 million while contracted to build three "stimulus package" projects in Coffs Harbour.
The investigation will aim to establish whether there was negligence on behalf of the department or primary contractor Bovis Lend Lease in awarding the tenders to the failed building company.
If negligence is proven, out-of-pocket sub-contractors will have legal grounds to recover what they are owed.