Oracle

Slowing residential presale settlements, falling property valuations, an increasing presence of purchaser litigation and a largely empty retail and commercial complex. The grand vision for Oracle was faltering and there was still over $400 million in debt to be repaid.

Background

Oracle comprised 507 residential apartments across two towers, 4,000 sq.m of retail tenancies and 6,700 sq.m of commercial tenancies – and was comfortably one of the largest mixed use projects in Australia. While 400 of the 507 apartments were presold, market conditions were deteriorating which saw valuations fall by
between 20–50%, impacting the motivation and ability of buyers to settle. With buyers not settling, market confidence was down and available cash to repay debt was diminishing.

The activation of the project into the local community was also suffering as a large number of the ground floor retail tenancies and upper level offices were vacant, or recently leased but reliant on the developer for cash contributions to complete tenancy fit out works. With empty shop front windows and vacancies throughout
the complex, there was limited street level activation which was negatively impacting prospective tenants and buyers of the apartments.

How we helped

1. We stabilised the residential pre-sale settlement process and defended
all litigation

A buyer by buyer, apartment by apartment review was completed so we understood the financial and personal circumstances of each buyer. Armed with this knowledge we then entered a series of face to face negotiations with buyers to resolve disputes. In some cases, we managed litigation through the courts to protect the brand and reputation of our clients and the Oracle project.

2. We determined the optimal tenancy mix and then set about leasing the retail and commercial complex

The key to creating a vibrant tenancy mix was to determine the types of tenants that could co-locate together and thrive of each other’s business. Four key precincts were ultimately formed which included food, fashion, art and service.

3. We rebuilt confidence in the Oracle project before relaunching the remaining residential units

With litigation and the presale negotiation process largely behind us and a thriving and activated retail and commercial complex, timing was right to relaunch the remaining residential units. Supported by a refreshed brand and updated marketing collateral, sales were strong and prices incrementally increased over time.

Results

Our work to restore confidence in the Oracle project has seen it become one of the most well-known and visited complexes on the Gold Coast.

We delivered over $105 million in residential presale settlements, successfully defended against $15 million in litigation, leased over 9,000 sq.m of retail and commercial tenancies, sold the retail and commercial complex for $65 million and sold and settled more than 240 apartments valued at over $245 million.