Disgraced developer's block up for sale
VALUED at $1.2 million by the bank, a 40ha site owned by disgraced Sydney-based developer, George Cheihk has hit the market.
The 36 Child St, Riverview is destined for low-density residential development, 20ha dedicated to approximately 360 lots, another 20ha dedicated to council maintained parkland, according to Ray White Special Projects associate director Dax Roep.
"There is a lot of (financial) up lift so we're selling it as is," he said.
"The initial interest is from all the typical major groups, Heron, Villaworld, a lot of the larger builder groups or local development guys who do work out that way."
There is a lapsed development application on the property from 2016 which cost $200,000 to renew with council, allowing the site to be chopped up into 220 low-density housing lots.
However with the new proposal the property will be sold with there are 366 - but it has not been approved by council.
"That'll be the real key, people will want to pick it up as it is, and all of those (builders) will look to push that further," Mr Roep said.
The property is 15 minutes to Springfield CBD, 30km to Brisbane and only 3km away from Redbank Plaza.
Originally the site was sold to Cheihk in 2013 for $671,000. The property was purchased from the Scouts Association of Australia, Queensland Branch, who picked up the site for $325,000 in 2003.
The property is now held by a Gold Coast insolvency firm as Cheihk had to default on a number of assets around the country.
"The owner had a lot of issues and didn't have a lot of funds to finalise them," Mr Roep said.
"The valuers have had a look at it ... the value doubles overnight if the buyer gets the development approvals in.
"Certainly there's a fair bit of work, it won't be high density townhouses.
"The total yield then under the application will be 20ha, you have another 20ha handed back to council in it's original state - that will remain in its natural state."
WHO IS GEORGE CHEIHK?
SYDNEY-born Cheihk arrived in Queensland in the early-2000s in a blaze of cash. He hit BRW's Young Rich list in 2005 valued at $35 million and his companies acquired a massive Ipswich land portfolio.
The Lamborghini-driving Cheihk ran property outfit QLD Group in the 2000s, and his companies donated more than $600,000 to Liberal and Labor politics.
He also had several large development sites scattered around Ipswich came under scrutiny as an associate of former Ipswich City Council mayor Paul Pisasale.
In 2007 Cheihk's company snapped up an Ipswich CBD nightclub property before being sued by a Commonwealth Bank subsidiary over an outstanding $10 million debt.