Coast development on hold as receivers move in
THE implications of the global financial crisis have led RPG to pause marketing 1 Emporio Pl at Maroochydore while the land owned by Wifarm Trust is placed into receivership by the mortgage holder Jemalong Property Pty Ltd.
The Trust was set up in 2006 to buy and develop the property off Maroochy Blvd. The last two sites will be put on the market soon with development approvals attached.
Jay Emmerton, CEO of RPG who manage the development on behalf of Wifarm, said Emporio needed to go through a restructuring process.
The group was committed to giving their stakeholders as much clear information as possible throughout the whole process, he said.
Jemalong Property Pty Ltd has funded the development since 2010 and has been working with the original investors to resolve the project finance matters.
As the secured creditor, Jemalong has now chosen to appoint a receiver.
"What will happen now, is that an independent evaluation and sales process will start immediately and take several months to conclude. The sale will include development approvals for the highest and best use of the properties and we will assist the receiver wherever required," Mr Emmerton said.
"This change isn't easy for anyone involved, but I think it is ultimately a necessary and positive shift from an entity that has been working for years to overcome the impacts of the Global Financial Crisis to a new and stable financial platform.
"All subcontractors, suppliers, and consultants have been paid in full. It won't impact on any other projects or our staff. It will unfortunately, impact external investors who have been involved in the project since 2006 (pre-GFC).
Mr Emmerton said he still had faith in the future of the Emporio development.