ONE of Australia's largest apartment tower projects, the $850 million Oracle Broadbeach complex on the Gold Coast, is in receivership.
The 505-apartment complex at Broadbeach was being developed by Niecon subsidiary South Sky Investments.
South Sky Investment director Michael Nikiforides placed the company into receivership.
It is the second Niecon-related business to fail.
This month the Nirvana by the Sea residential Gold Coast project was also handed over to its financier.
It is understood that the completed Oracle project collapsed because of problems with settlements of up to 400 apartments within the towers that had been pre-sold before the global financial crisis.
After the crisis hit, many were unable to come up with the cash.
The apartments had been in the process of settling since October, sources said.
With apartments spanning two towers, the complex also includes a five-star hotel, retail shops and commercial office space.
A report in September suggested remaining apartments ranged in price from $850,000 to $12m for the penthouse. KordaMentha's head of property, Berrick Wilson, said receivers and managers would manage settlements of the pre-sold apartments and that it would be "business as usual".
The Peppers Broadbeach Hotel within the complex was now fully operational after opening last month and the new retail precinct had just opened for business, with leasing under way.
"These are absolutely top-shelf apartments in a world-class development," Mr Wilson said.
"The vast majority have been pre-sold and we will be working through the settlement process to deliver purchasers their apartments.
"The financiers have funded the development to give certainty to the competition of the project and we expect pre-sale purchasers to honour their contractual obligations."
Apartments in the tower range from one to three-bedroom dwellings.
Niecon is the developer of a number of Gold Coast projects, including the Reflection Tower Two development on Coolangatta Beach as well as the failed $90 million Nirvana by the Sea.
Receiver John Park, of KordaMentha, was appointed to the company developing the Nirvana by the Sea tower, Kirra Beachfront Investments.
