Quays project delivers
Management-rights sale expected to produce $12m icing on cake for parting Emandar partners
IT’S an amicable ‘divorce’ and part of the so-called settlement will involve splitting up a windfall of at least $12 million.
The parting parties are Evan Raptis and George Mastrocostas, who a decade ago set up what has evolved into a hugely successful property development group, Emandar.
They’re winding down their partnership and in the process late last year they put the management rights to their six-building Harbour Quays project at Biggera Waters on the market.
It seems interest in the rights was so strong that they threw the rights to their four building East Quays, which like Harbour Quays is adjacent to Harbour Town, into the mix.
Market sources say some big-hitters came out of the woodwork and that in the end a Gold Coast ‘consortium’ has emerged as the winner.
The deal, which reportedly settles next month, is for at least $12 million and might even top $13 million.
It will represent the biggest management-rights sale on the Gold Coast since two Surfers Paradise whoppers were consummated by the listed Mantra group in 2015.
Mantra outlaid $32.5 million for the Chevron Renaissance rights and $25.7 million for those at the Soul tower.
The Harbour Quays and East Quays buildings house more than 650 apartments and way in excess of 400 are in the letting pools.
The Emandar partners apparently decided from day one that they would not sell the management rights off the plan as they developed each of the towers.
Instead, they elected to oversee the letting of apartments and build up a lusty and steady income stream.
They appear to have succeeded handsomely, given that when they put the Harbour Quays rights up for sale nearly 250 of the project’s 360 or so apartments were in the letting pool and the rights apparently were netting close to $1 million.
It’s conceivable that had they sold the rights off the plan they might have received only half the money they’re about to pocket next month.
Mind you, that’s not the only money the Emandar partners will be sharing at the end of what has been a very rewarding ‘marriage’ by what were two development newcomers.
They’re kicking a big goal with a three-tower, 378apartment project at the southern end of Lake Orr at Varsity Lakes.
South Lakes is being built on a 3ha site that cost $12.8 million and has a 400metre frontage to the lake and it’s met with vigorous demand from buyers.
The first two stages have sold out for around $150 million – the first stage has settled – and the final tower will be completed by year’s end.
When the partners go their separate ways, Evan’s apparently joining his developer dad, Jim Raptis, and George is going solo – he reportedly already has a foot on at least one site.
IT WILL REPRESENT THE BIGGEST MANAGEMENT RIGHTS SALE ON THE GOLD COAST SINCE 2015.