This article is from the Australian Property Journal archive
MELBOURNE developer The Project Group has collapsed after racking up almost $50 in debt with 30 apartment developments, leaving hundreds of buyers stranded.
The 10 year old company has been placed into administration.
It is believed that the group has around 30 apartment projects in various stages of completion across inner Melbourne worth a combined $125 million, including:
- Curve at 294-296 Keilor Rd, Essendon North
- Merri Green at 200 Beavers Rd, Northcote
- Gramercy at 70 Wattletree Rd, Armadale
- Carlton Apartments at 3 Carlton St Prahran
- Nightingale Apartments at 6 Florence St Brunswick
- Little Oxford at 7 Little Oxford St Collingwood
- And Herbert King at 172 Lennox St Richmond, just to name a few.
It is understood that hundreds of apartment buyers will be stranded with incomplete projects until the administration is resolved.
Sub contractors are believed to be owed $30 million, according to early industry estimates.
Meanwhile it is believed the company has not advertised the appointment of administrators Worrells last week, despite ASIC regulations requiring it to be published within 24 hours.
This means many subcontractors may not have been made aware of the administration and may have continued ordering materials they will not be compensated for.
It is understood The Project Group was trading up until the Worrells appointment last week and more than 100 staff were not laid off yesterday.
It is alleged that managing director Michael Robertson put the company into administration when he was accused of trading while insolvent. He is currently believed to be putting together a proposal that will see various project completed and return some funds to creditors.
Australian Property Journal
