Another Gold Coast property project crashes, developers slash jobs

The credit crunch has claimed another high-flying property project on the Gold Coast, with receivers have been appointed to the River Terrance Towers project, a 30-storey apartment complex in Surfers Paradise.

The credit crunch has claimed another high-flying property project on the Gold Coast, with receivers have been appointed to the River Terrance Towers project, a 30-storey apartment complex in Surfers Paradise.

The Australian Financial Review reports that BDO Kendalls has been appointed to a company controlled by Sydney-based developer Tom Manassa after a request from major creditor St George Bank.

Manassa’s son, Tom Manassa junior, told the paper that he was confident a new financier could be found to allow the project to continue. “The whole issue was the finance,” he said.

The River Terrance Towers project is the latest in a long line of property developments in Queensland to collapse because of a lack of funding.

Just weeks after the collapse of Gold Coast projects that were being developed by veterans Jim Raptis group and Sydney developer Mick Bezzina, three developments by Brisbane-based developer Petrac were placed into receivership.

Meanwhile property development and construction giant Brookfield Multiplex has cut 80 jobs, while Macquarie Group is believed to have cut around 70 staff.

The cuts come just days after AMP Capital announced it was trimming 30 staff and Mirvac announced 160 jobs would go.

Related stories:

• Another Queensland property developer in trouble
• Gold Coast property developer Raptis Group on the brink