More salt in wound
THE stalled $ 500 million Saltwater project on Townsv i l l e ’ s Breakwater c o ntinues to pull funds from the h i p p o c k e t s o f l o n g - suffering buyers who are having to meet fees for bank guarantees used to secure apartments.
Sally Elliott, whose Smith + Elliott agency marketed Saltwater, said yesterday about 30 Townsville residents had signed up to buy apartments, many of whom were paying the fees while others had funds locked up in deposits.
‘ ‘ B u y e r s a r e u n d e r - standably angry at having to pay annual or half-yearly costs, or at having funds tied up, for a project that has been significantly delayed and now appears unlikely to proceed,’’ she said.
‘‘ Attempts to elicit information as to Resort Corp’s i ntentions f or Saltwater have been unsuccessful, adding to the frustration.
‘‘ I would like to see Resort Corp do the right thing and void contracts so buyers can put their finances in order and move on.’’
Ms Elliott said Townsville residents had signed up to invest about $ 20 million in Saltwater apartments.
T h e S a l t wat e r p r o j e c t comprises five buildings, including a 15-storey tower, sharing about 500 apartments and a 5000sq m dining and retail precinct. It stalled when Resort Corp encountered financial difficulties and its 22 companies were placed under administration in March 2009.
Weeks l a t e r , a d ministrator David Clout of Brisbane’s David Clout and Associates, organised a vote in which creditors agreed to a deed of arrangement to enable a sell-off of assets.
The deed is understood to give the Gold Coast company 30 months in which to dispose of its assets.
Hopes Saltwater might proceed resurfaced briefly last year after Resort Corp’s principals, architect Peter Madrers and lawyer Paul Brinsmead, formed an ass o c i a t i o n w i t h I n d i a ’ s P e a r l s I n f r a s t r u c t u r e Group, which was seeking investment opportunities in Australia.
They brokered Pearls Australasia’s purchase for $ 62.5 million of the Gold Coast’s Sheraton Mirage property. campaign that drew three responses but did not lead to a sale.
Saltwater’s 4.96ha site was bought for around $ 50 million in October 2006 and reduced by civil works to around 2.96ha.