- RPG to acquire management rights for two apartment towers on the Gold Coast
- Also includes development management agreement
- Provides for a "stable, low-risk income for the next 20 years"
Yesterday, Raptis Group (ASX: RPG) took two resolutions to a general meeting, both passing with over 99 per cent majorities.
The two resolutions were:
- Concerned entering into arrangements to acquire a beneficial interest in two Management Rights businesses with entities associated with James Raptis.
- That entering into a Development Management Agreement with an entity associated with James Raptis be approved.
The aforementioned management rights were for two apartment towers, as well as a development management agreement, located in two of the Gold Coast’s premier beachfront suburbs.
The management rights are for The Gallery Residences in Broadbeach and the under-construction Pearl tower at Main Beach.
The Gallery Residences is a newly completed and sold-out luxury high rise tower that houses both owner-occupied apartments, and short-term rentals. It is also within the vicinity of The Gold Coast Convention and Exhibition Centre, as well as The Star Gold Coast.
Raptis Group’s resolutions allow for the rights, and accompanying assets of the two towers, to be acquired for $2,813,218.
“Today’s resolution allows Raptis Group Limited to acquire management rights that will generate stable, low-risk income for the next 20 years,” said Raptis Chairman Jim Raptis.
“Management rights are a sound, low-risk medium to long-term income strategy. We’re pleased with the overwhelming support the proposals received from shareholders.”
“The consensus from shareholders gives us the confidence to consider similar income-generating assets into the future.”
The news comes as Raptis announced in January it was seeking a partner for its build-to-rent projects.