ASF Gold Coast investment faces new hurdle

New restrictions on foreign investment announced by the Chinese government are set to increase uncertainty on ASF Group’s bid for a Gold Coast IR.

Australia.- ASF Group’s aspirations to develop an integrated resort (IR) in Gold Coast could be in jeopardy after, earlier this month, the Chinese government announced new restrictions on foreign investment. The developer’s project was already facing several challenges by the Australian state’s government and uncertainty surrounding the potential development is far from clearing up.

The Gold Coast Bulletin quoted Knight Frank agent Mark Witheriff indicating that ASF Group is not the only developer affected by China’s decision, as he said to be aware of at least two major deals, totalling about US$31.8 million, that had fallen over after Chinese interests withdrew from negotiations.

Mr Witheriff suspects “there will be a slowdown until people see the lie of the land in terms of property,” and added: “There is still interest from Chinese groups but they may not be as bullish as they were.” He also commented that Sidney and Melbourne were likely to be harder hit than Gold Coast, as the latter “is still relatively cheap and there is still significant interest from Australian groups and from Southeast Asia – Singapore and Malaysia.”