What is happening at Charlotte Towers?

There have been protests in the street by tenants living in Charlotte Towers, due to Oaks taking over management of the apartment building and trying to turn it into a hotel.

Devine, the developer, has been advertising that only two apartments remain for sale. For example, in the Courier Mail "Home" section on 20 October, there is a half page advertorial titled "Guaranteed return" saying that there "are only two residences remaining for sale in the recently completed 416-apartment development". According to the article, one residence is a one bedroom priced at $367,000 and the other is a 2 bedroom priced at $498.000. Devine is offering a rental guarantee on these apartments, but says nothing about Oaks and its efforts to move the building to short stay rentals. Ken Woodley, the Devine national marketing manager (who, lives an a Mirvac apartment on Alice Street in Brisbane) is quoted in the "article".

Strangely, Colliers PRD project marketing team just listed a number of apartments for sale in Charlotte Towers. I wonder if this is developer stock? It looks like developer stock. If so, how can Devine honestly say that only 2 apartments remain for sale?

The newly listed apartments include:

• 2 bed, 2 bath, 1 car, 15th floor at $489,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380097
• 2 bed, 2 bath, 1 car, 12th floor at $465,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380147
  
• 2 bed, 2 bath, 1 car 11th floor at $482,950 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380140
• 2 bed, 1 bath, 1 car, at $475,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380071
  

• 1 bed, 1 bath, no car, 39th floor at $409,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379839
• 1 bed, 1 bath, no car, 39th floor at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379967
  
• 1 bed, 1 bath no car, 37th floor at $419,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380050
  
• 1 bed, 1 bath, study, no car, high level at $420,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379937
• 1 bed, 1 bath, car, midlevel at $435,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379998
  
• 1 bed, 1 bath, 1 car, 25th floor at $460,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380131
• 1 bed, 1 bath, no car, 24th floor at $385,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380078
• 1 bed, 1 bath, no car, 23rd floor at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380031
  
• 1 bed, 1 bath, no car, 18th floor at $335,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380121
• 1 bed, 1 bath, no car, 12th floor at $329,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380114

Devine's own website lists four apartments for sale in Charlotte Towers:

• Apt 2603, 2 bed, 1 bath, 1 car at $498,000
  http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104281213
• Apt 3312, 1 bed, 1 bath, no car at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104295395
• Apt 4101, 1 bed, 1 bath, no car at $378,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104143790
• Apt 3808, 1 bed, 1 bath, no car $367,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103984351
  

Do you believe Devine that only two apartments are left for sale in Charlotte Towers? My guess is that the developer is holding more stock than this.

Devine's shareholder report states that about 30 apartments remained for sale on 30 June 2007, and that sale of all the remaining units were expected in the December 07 half.

It is noted that 2 bed apartments on the lower level failed to sell at auction earlier this year, with the best bid being $360,000.

I would avoid Charlotte Towers at all cost!