Might be back on soon, judging from the comments in this...

Might be back on soon, judging from the comments in this article:

Raptis, CP1 sell Surfers site

Nick Nichols

September 30th, 2008

EMBATTLED partners Raptis Group and CP1 have sold a large development site in Surfers Paradise, on the Gold Coast, for $30 million, allowing at least one of them to break even on their Gold Coast International hotel investment.

The partners have offloaded the 1.1ha site, north of the hotel, to Pandanus Beach Investments, a company associated with Gold Coast developers the Nikiforides family.

The deal comes in the wake of the $56.5 million sale of the Gold Coast International (GCI) to listed hotel group Amalgamated Holdings in August.

That sale settled yesterday.

Although Raptis Group and CP1 had paid Orix Australia $70 million for the GCI assets early last year, they forked out a whopping $15 million fee to Lend Lease for brokering the sale.

They had laid plans for a massive four-tower project on the site, which would have eventually seen the demolition of the GCI.

The plans have been washed away with the credit tsunami that has hit the Gold Coast development scene in recent months.

The $30 million deal for the land has been struck at book value for CP1, after the company had written down the property's value from $44 million in its June 30 accounts.

CP1 managing director Phil Sullivan yesterday said the sale would provide a break-even result for CP1, the development offshoot of finance group City Pacific.

"The proceeds from the hotel (and the land) will be used to reduce debt," said Mr Sullivan, although he conceded the sale price could have been better. There'll be opportunities in the future," he said of having to let go of the site.

The land sale is subject to 30 days' due diligence with settlement scheduled for the end of November.

It is unclear what the Nikiforides family intends to do with the site.

Con Nikiforides could not be contacted for comment yesterday.

Raptis Group chairman Jim Raptis said yesterday's sale would further reduce the company's debt.

Although sources said the sale was likely to be booked as a loss in the current year, it is the latest step in Raptis Group's massive debt reduction program which was triggered by the receivership earlier this month of four subsidiaries developing the third tower at Southport Central.

The company has placed all of its assets on the market, and has begun a search for joint-venture partners to complete the Surfers Paradise Hilton and the Iluka redevelopment.

Mr Raptis said the search was 'progressing well', but he could not comment further.

As for the campaign to sell the Sheraton Mirage, Mr Raptis said the property was generating solid inquires.

"The interest has been incredible," he said yesterday.

Tenders for the property close on October 10, and Mr Raptis said he was 'very confident' of achieving a sale from the campaign.

Meanwhile, Mr Sullivan said CP1 was 'very close' to securing its new funding arrangements with its banks.

The company's shares have been suspended since August 26 pending an announcement.