Alistair Walsh | 8 November 2012

Mollymook apartment development Beachlife listed in receivership sale

Mollymook apartment development Beachlife listed in receivership sale

Beachlife, the forsaken luxury Mollymook holiday apartment complex, has been listed for receivership sale through Westpac after the developers failed to secure sufficient holiday home buyer interest.

The vacant 8,500-square-metre block is the former site of a planned 79-unit apartment block on the south coast of New South Wales.

The project did not proceed after the developers failed to secure sufficient bank funding following the dramatic downturn in the second-home market after global financial crisis.

The receivers have moved after developer Peter Leffrey's Davocsh Pty Ltd had the vacant project site listed last December. It did not sell.

Davocsh had bought the site over 2006 and 2007 for a $7,425,000 total and planned to build an ambitious three-block luxury complex.

Plans for the site were originally approved in December 2007 and have been reactivated following  demolition of parts of the site.

Marketing for the campaign began in 2010 but was halted three months later by Davocsh. The concept became unstuck given banker lending hesitation on the ambitious Mollymook project.

Cramer Properties, which was marketing the units, managed to sell around five apartments in the three months, including the most expensive one in the building.

Off the plan prices for units originally ranged from $390,000 to $1.6 million through Cramer.

Interest in the units came primarily from empty-nesters in Canberra and Sydney looking to retire.

The plans for the project allow for three low rise buildings with 20 two-bedroom units, five two-bedroom + studies, 52 three-bedroom units, two three-bedroom penthouses, and 154 parking spots.

Section 94 contributions of $181,000 have been paid as well as long service levies of $88,480.00 but no water or sewer section 64 contributions have been paid to date. The current amount estimated as payable is $764,000 as at 1 July 2012.

“Often with receivership sales there’s been a cashflow issue potentially, in some instances there’s money outstanding with various parties. All those items are unpaid,” says Knight Frank agent Peter Krieg.

Krieg declined to disclose a price guide for the property or any other relevant information.

The land is 350 metres from the beach and has three street frontages.

The site is made up of several titles bought in 2006 and 2007 Davocsh which was co-directed by by Peter Leffley and Janine Treacy.

In 2006 Davocsh bought 56 Ocean Street for $3 million.

In 2007 Davocsh bought 54 Ocean Street for $1.625 million, 58 Ocean Street for $1.9 million and 1 Shepherd Street for $900,000.

The total cost of the land was $7,425,000.

Krieg told Property Observer he thinks the past acquisition sale prices are irrelevant.

The land is zoned 2(b2) which is intended to “provide for a variety of life styles by the provisions of areas for residential flat buildings to minimise the conflict with detached housing and to identify opportunities for motel development”.

If the buyer wanted to move away from a block of units, alternative uses indicated by the marketing include medium-density development including residential and holiday use, a mixture of townhouses and villas with potential of 25 three-bedroom or 35 two-bedroom townhouses subject to council approval.

Marketing for the property suggests the region will experience strong growth over the next decade, driven by retirees and leisure visitation.

The property is being sold by Knight Frank agent Peter Krieg and LJ Hooker agent Gary Cox.

Expressions of interest closed yesterday.

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