Oracle project in Gold Coast in receivership

The US$850 million Oracle project in the Gold Coast is now in receivership with KordaMentha now in charge of operating the twin tower development that includes 505 high-end apartments, a resort plus retail and commercial office space.

The project was built by Niecon Group, a subsidiary under the well-known property developer, Nikiforides family. KordaMentha head of property Berrick Wilson said in a statement that the receivers would "continue to support and enhance the development" as they formalize apartment sales.

"The vast majority has been pre-sold and we will be working through the settlement process to deliver purchasers their apartments," Wilson said. "The financiers have funded the development to give certainty to the completion of the project and we expect pre-sale purchasers to honor their contractual obligations."

The huge project is just one of the casualties of the Global Financial Crisis that left a lot of developers struggling to finish luxury projects. This week, another Niecon project?Nirvana by the Sea tower, was also placed in receivership.

Niecon chief executive Con Nikiforides was quoted by the Gold Coast Bulletin as saying that the company was dismayed by the decision to appoint receivers to the Nirvana by the Sea development, and blamed the decision of lender BOS International to appoint receivers exposed to the Irish banking crisis.