Ralan receivers to offload Ruby Apartments

Ralan receivers to offload Ruby Apartments

The collapse of property developer Ralan Group has triggered the sale of management rights for one of the most recent builds on the Gold Coast.

Ruby Apartments, a 30-level apartment complex in Surfers Paradise completed less than a year ago, was one of several developments that was left in the lurch by the Sydney-based company's downfall.

The completed apartment was just one of a planned 'Ruby Collection' that was never completed by Ralan before it fell into receivership. The complete Ruby Collection was to include the 30-level Ruby Apartments plus a further three towers.

With the management rights now on the market, Ralan's receivers Deloitte has appointed tourism and accommodation specialist agency ResortBrokers to find a buyer. 

The new buyer of the former Ralan-operated building will manage the 230 apartments, 13 townhouses and four freehold lots, including day-to-day caretaking duties.

According to ResortBrokers director Alex Cook, the Ruby Apartments are already attracting significant attention from prospective managers.

"We've already received significant interest from a range of experienced, large-scale operating groups, including well-established local private operators and well-known nationwide corporate operators," says Cook.

The four freehold sites, one of which includes Ruby Apartments, are being offered either in one-line or individually.

When Ralan Group collapsed earlier this year it left a development pipeline of more than 3,000 residential units in the construction or pre-construction stage, as well as more than 600 operational rooms.

At the time of its collapse administrators Grant Thornton said Ralan Group owed around $500 million to creditors.

The ABC reports it obtained contracts showing how Ralan was asking homebuyers to release their deposits as "extremely risky loans" to the company in return for 15 per cent annual interest.

Said Jahani of Grant Thorton told the broadcaster the developer could be referred to the Australian Securities and Investments Commission (ASIC) for investigation.

"Once you start raising money beyond 20 people, you need to have licenses from ASIC, you need to follow strict protocols in terms of how you produce documents, like a product disclosure statement. None of that was actually done by Ralan," Jahani was quoted as saying.

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