Ralan sales start with Ruby rights

Failed developer’s assets on block

THE great Ralan sell-off is under way, with receivers putting the management rights to the collapsed developer’s Ruby Apartments tower in Surfers Paradise on the market.

They have launched a quick-fire campaign to sell the rights to the 230apartment tower, with would-be buyers having only nine days to put up their hands.

Ralan failed in late July, owing at least $500 million and leaving hundreds of buyers of apartments on the Gold Coast and in Sydney at risk of losing nearly $280 million in deposits.

Receivers have taken over the operation of the Ruby Apartments tower, which was completed 10 months ago and has been run as a hotel-style property.

The building’s food and drink outlets, including Stones Bar & Grill, have been closed.

Ruby guests are no longer allowed to use the water park and play area at the adjoining Ralan-owned Paradise Resort; that property is in the hands of a different receiver.

Property sources say valuers have been engaged to assess the worth of Ralan’s Gold Coast holdings, which include a city block immediately to the south of Ruby.

The move is seen as a prelude to sale campaigns by groups with exposure to the properties. Lenders to Ralan include Westpac, Wingate and Balmain.

The Ruby receivers, Deloitte, have appointed ResortBrokers to sell the management rights and four freehold titles in the Norfolk Ave building.

The expressions of interest campaign closes on Friday next week and is being run by ResortBrokers director Alex Cook, along with colleagues Glenn Millar and Steve Campbell.

Mr Cook yesterday said there already had been a strong level of inquiry from groups with major management-rights operations.

“We’re confident of securing a high-quality operator, which will be a good outcome for all parties involved,” he said.

The freehold lots in the building are being sold either in one lot or individually.

They include a restaurant/kitchen, a bar, a cafe/ kiosk and a retail space in the lobby.

Ralan, headed by UKborn Sydney developer William O’Dwyer, became the biggest landholder in Surfers Paradise in 2015 when it paid a total of $95 million for that southern block and for the block that houses the resort.

Approvals were gained for six towers worth $2 billion – four on the resort site – housing more than 2200 apartments.

Ruby, which includes 13 townhouses, was the only tower completed before the 58-entity Ralan called in administrators.

Buyers had signed up for $1.68 million worth of apartments in the other towers, many of them signing over their deposits to Ralan as unsecured loans.

WE’RE CONFIDENT OF SECURING A HIGHQUALITY OPERATOR, WHICH WILL BE A GOOD OUTCOME FOR ALL PARTIES INVOLVED RESORT BROKERS DIRECTOR ALEX COOK