Meriton swoops on $50m Sydney site as receivership sales flood market

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More than one in 10 development sites for sale in western Sydney are being sold by receivers, Peter Vines of Ray White Commercial says.

Receivership sites on the market include properties in Wentworthville, Grantham Farm, Hurstville, Schofields, Parramatta and Box Hill.when it revealed there had been a sharp rise in the number of development sites being put up for sale as developers came under pressure from their lenders.

In May, insolvency specialists at KordaMentha were appointed receivers and managers of the local KWG entity that owned the site by secured lender Dragons 519 Limited, a Cayman Islands-based company.A statutory report filed with the Australian Securities and Investments Commission shows a $59.5 million mortgage on the property and $57.3 million owed to Dragons 519 Limited.

“These sales are focused on sites with developer-specific strategies that haven’t been able to withstand the recent rapid macro changes, namely interest rate rises,” Mr Litwin said.However, he said the increase in receivership sales was not an indicator that the market has crashed. That point was also made by Mr Vines, who highlighted that good sites with potential were still selling at strong prices.Crown Group’s Mastery site in inner Sydney to Aware Super for $121 million.

 

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