The leadership transition for Gold Coast-born developer Raptis Group (ASX: RPG) has taken a surprising twist following the announcement that property industry entrepreneur Russell Garnett has stepped down as CEO after less than two months in the role.
However, the company, which recently shifted its headquarters to Sydney as part of the transition, has moved quickly to fill the void with the appointment of long-time director and company secretary Malcolm Cory to lead the company.
The resignation of Garnett comes just weeks after the appointment of Ross Patane as director and incoming non-executive chair of the board to replace company founder Jim Raptis who steps down as chairman on 30 September 2025.
The enlistment of Patane reflects a major shift in the company’s business strategy which currently comprises management rights for Gold Coast high rises.
Raptis Group plans to change its name to Group One Capital, subject to shareholder approval, as it steps into developer financing with the company banking on two revenue agreements that it has previously informed the market could unlock about $16 million in fee income.
The company confirmed to the market this afternoon that the two loan facilities previously announced have now settled.
The surprise resignation of Garnett, effective immediately, was announced to the market yesterday
Raptis Group told the market that Garnett was appointed to fill a “casual vacancy” when Helen Raptis resigned as a director on 1 July 2025.
However, the announcement to the market at the time of his appointment named Garnett as the company’s new CEO and managing director on an annual salary of $200,000.
“The board would like to thank Mr Garnett for his contribution to the company and wish him all the best in his future endeavours,” says Raptis Group in yesterday’s announcement.
Garnett, who leads private business incubator Urban Revolutions and co-living property company Vuvale, told Business News Australia following his appointment last month that he was aiming to grow the Raptis Group management rights business and “grow it fast”.
The company has subsequently announced a “revenue agreement” through which fee income of up to $16 million will be generated from providing debt facilities to Gold Coast projects undertaken by private companies controlled by Jim Raptis.
Raptis Group followed this agreement up earlier this month with a second deal as the company announced that its wholly owned subsidiary FSU Capital would provide services to Philadelphia Developments, a Jim Raptis company that is developing the Pearl Residences high rise at Main Beach.
Under the second agreement, the company says that FSU has arranged “acceptable debt” for Philadelphia’s residual unsold units in Pearl with the commission-based 2 per cent fee of $600,000 payable on the next unit settlement which is due sometime next month.
Raptis Group's most recent quarterly activities report revealed that the company generated revenue of just $675,104 in FY25.
"The successful completion of these facilities underscores the continuing capability of FSU to source and deliver funding solutions for clients," says Raptis Group after confirming settlement of the loan facilities this afternoon..
Shares in Raptis Group were up 1.5c to 11.5c at 3.33pm (AEST).
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