This article is from the Australian Property Journal archive
WESTERN Australian developer Luke Saraceni has lost his legal battle to block the bank and receivers from auditing his companies.
The Full Court of the Supreme Court of WA made a unanimous decision to throw out Saraceni’s objection to a public examination on his management of the companies, on constitutional grounds.
The receivers of Saraceni’s companies, Ferrier Hodgson’s Martin Jones welcomed the decision, who had previously applied for court orders to audit Saraceni, as a director of Seaport Pty Ltd, Newport Securities Pty Ltd and Mayport Nominees Pty Ltd.
“We welcome the decision as it helps to clear the way for public examinations to ultimately proceed against Luke Saraceni and others, and will enable us to further investigate matters concerning the conduct and management of the companies.
“A highly technical argument was raised by Saraceni in an attempt to avoid attending the public examinations and Saraceni failed comprehensively in his challenge,” Jones said.
In January last year, Bankwest appointed Ferrier Hodgson to Saraceni’s three companies, following defaults under the loan arrangements with each company:
· Seaport Pty Ltd — owns an asset known as the Bayside City Plaza, a shopping centre located in Warrnambool, Victoria.
· Newport Securities Pty Ltd (in its own capacity and as trustee of the Newport Family Trust) – owns 40 ha property where the related businesses of Saracen Estates and the Duckstein Brewery (which are not subject to insolvency appointments) operate from, in the Margaret River region, south of Perth.
· Mayport Nominees Pty Ltd – a property consisting of strata retail units in Spearwood, Perth. At present, one lot remains unsold.
Saraceni has another legal battle running in the Supreme Court of WA, against the Bank of Scotland International and Bankwest over their appointment of receivers to the $500 million Raine Square project in Perth.
The appointment of KordaMentha in January 2011 to Raine Square triggered a domino effect to the three companies.
Saraceni is suing the two banks, alleging the appointment was invalid and is seeking Court approval to remove KordaMentha as receivers.
He is also seeking $50 million in damages.
Raine Square is a 23-storey commercial tower comprising 44,000 sqm of office space over 20 levels and 13,000 sqm of retail space over three levels, as well as a 227-bay public car park and 650-seat food court on the ground level.
Ironically, the office space in the project will be leased by Bankwest.
PropertyReview
