Buyers of off-the-plan homes in Campbell complex left in limbo after development fails to secure finance

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Approval for The Foothills apartments at the base of Mount Ainslie was granted almost two years ago. But work on the site has now been stalled until at least the end of next year.

abc.net.au/news/doma-development-delayed-after-failing-to-secure-finance/101710302A controversial development near the Australian War Memorial in Canberra will now sit untouched until at least the end of next year after the developer failed to secure finance for the project.Doma says delays and rising building costs are the reason the project has failed to secure finance

Approval for Doma Group's The Foothills development at the base of Mount Ainslie was granted almost two years ago afterBut today, Doma managing director Jure Domazet confirmed work on the site had been stalled until at least the end of 2023. "Cost escalation in off-the-plan developments is generally allowed for by developers, but the delays, coupled with unusually high escalation that the whole industry has experienced in the last two years, has made management of this risk impossible for components of this development.""Infrastructure works, funded by Doma, will be completed on the site and then there will be a pause while the situation is assessed," he said.

Mr Domazet said buyers of the first three stages of the development had been contacted about the delays.The ABC understands that real estate agents have been told to await further instructions for their clients, which are likely to be delivered in March next year.

 

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