article in gold coast website: today

"AFL must act quickly to snatch stadium site
Nick Nichols

28May08

THE Australian Football League has only months to decide if it wants to set up a new stadium at Nerang, with one of its preferred sites in advanced stages of planning to become an upmarket over-50s residential project.

Property financier City Pacific and developer Noel Mewett say preliminary earthworks for the $350 million Sunrise Waters project could be three to six months away, depending on council approval.

Also, rumours that City Pacific was pulling out of the deal were dismissed by the partners, who own the 42ha riverfront site along Nerang-Broadbeach Road just east of the Nerang railway station, through a 50-50 joint venture, Sunrise Waters Pty Ltd.

The partners paid $28.05 million for the site in April last year.

City Pacific chief executive Phil Sullivan said yesterday the company had no plans to pull out of the project, which is targeting active, affluent baby-boomers.

However, he said it was 'the right sort of location (for an AFL stadium) and everything is a possibility at his stage'.

"But there's nothing firm on the table from any area," he said.

Gold Coast AFL news
Mr Mewett said years of planning had gone into Sunrise Waters, which will comprise 303 freehold-title properties and a centrepiece $15 million community centre cantilevered out over an 11ha lake.

The site also has been touted as a premier option for a new council headquarters which could be developed in tandem with a new stadium.

"I suppose we're in the box seat in relation to the fact we control the premium site," said Mr Mewett.

"We may be interested in looking at some sort of land swap for other areas."

Meanwhile, Mr Sullivan said pressure on City Pacific, which has been buffeted by the global credit crisis, had eased.

"We've had to make some difficult decisions over the past few months in the interest of our shareholders and unitholders," he said.

"But we see blue water ahead."

City Pacific began to sell down some assets earlier this year, starting with its interest in the Townsville Ocean Terminal project to listed Cairns developer CEC Group.

CEC has until Monday to complete due diligence on the purchase.

Also, earlier this month, City Pacific revealed its First Mortgage Fund would be repaid a $205 million loan from one of its borrowers.

The identity of the borrower has not been disclosed, but it is believed to be Craig Perry's Foresight Acquisitions, with which City Pacific is in partnership for a $600 million twin-tower project, Pacific Beach, earmarked for a 1.1ha beachfront site on Old Burleigh Road at Surfers Paradise.

Market sources said a Korean buyer has cast a ruler over the property and was a likely buyer.

City Pacific shares closed 5c lower at 82c yesterday."


It would be nice if shareholders were kept in the loop...