Collier wins role to sell Warren Anderson’s Fernhill Estate

FALLEN business investor Warren Anderson is about to lose the cherry in his once bustling property portfolio, Fernhill Estate.

Receivers KordaMentha have appointed Colliers International to handle the sale of Fernhill Estate, which has been described as “one of Sydney’s greatest properties” and expected to fetch between $50 million and $70m when it hits the market this weekend.

The 654 hectare estate is one of the oldest properties in the Mulgoa region, originally owned by William Cox, the engineer who oversaw the road that passed over the Blue Mountains.

Cox was awarded the first land grant in the Mulgoa Valley by governor Macquarie. The area went on to be an architectural showpiece of the Colony, with the homes of numerous members of the Cox and other prominent families being of a high standard.

Fernhill Estate was built for Edward Cox, the sixth and youngest son of William Cox. The Cox family sold the property in 1896, and has only had ten owners in 170 years.

Warren Anderson bought the property in 1980 and invested in it by adding modifications to the homestead and extending the gardens.

The estate’s main residence is a six-bedroom sandstone house with five bathrooms, a ballroom and a basement, which is to have housed Mr Anderson’s extensive gun collection.

The guns are no longer there, nor the antiques that once filled the lavish house, which were sold-off through auction house Bonham & Goodman earlier this year earning KordaMentha $15 million.

The first building erected on the sprawling estate was the stables, built in 1839. Once housing Irish stonemasons who worked on the main residence when it was being built, the building can house up to 20 horses. Other features on the property include a pool, a number of dams and a full-length racecourse.

Colliers International executive Guillaume Volz, who is handling the sale, has already fielded queries from interested local and international parties.

Date: 17 May 2011 | For the full report, please visit http://www.theaustralian.com.au

Townsvilles’s Domain Central grabbed as ‘for sale’ sign goes up on centres

AN offshore investor is believed to have purchased a half-share in Queensland’s largest bulky goods and outlet shopping centre, Domain Central in Townsville, in a deal worth more than $50 million.

The property is one of several centres, worth a total of more than $700m, being pursued by investors.

Domain Central is among the stable of assets linked to interests of Steve Moss, who is a director of companies including Ticor Holdings and Fenix Real Estate.

It has more than 60 retailers, including JB Hi-Fi, Freedom Furniture, Nick Scali, Dick Smith, Trade Secret and Snooze, and 1800 carparking spaces.

The Domain stake is believed to have been sold after unsuccessful attempts to sell Fenix’s $90m Gold Coast Marina Mirage.

The Gold Coast centre was placed in the hands of receivers David Winterbottom and Martin Madden of KordaMentha on behalf of St George Bank.

Marina Mirage was built by disgraced Queensland developer, the late Christopher Skase, and purchased by MFS Diversified Trust for $28.4m in 2005. In the same year, MFS sold the centre to Fenix, which was then known as Ticor Developments, for $40m.

KordaMentha is also understood to be selling Ticor’s At Home Penrith bulky goods centre in Sydney, estimated to be worth about $80m. It is unclear whether the property remains for sale, as this week KordaMentha did not return a call about the status of the Ticor interests.

Last year, Mr Winterbottom said Marina Mirage would be placed back on the market when conditions improved.

Other shopping centres that have recently caught the eye of investors include the Oasis centre, which was recently taken off the market by Thakral Holdings when it was offered jointly for sale with the adjoining Sofitel Gold Coast Broadbeach hotel. The collective price tag was about $200m.

Date: 07 April 2011 | For the full report, please visit http://www.theaustralian.com.au

Oracle apartments facing settlements hold-up because of floods

SETTLEMENTS for the collapsed $700 million Oracle Broadbeach apartment project on the Gold Coast are likely to be delayed by the Queensland floods.

This is because Brisbane lawyers working on the contracts are unable to return to their flooded city offices, according to the receiver for the project.

KordaMentha’s head of property, Berrick Wilson, said there had been at least 10 more settlements on Oracle apartments since KordaMentha was appointed as a receiver last month.

“From next week, things will get back and progress reasonably well,” he said.

Mr Wilson added that there had been 80 groups through the Oracle sales office last week.

Michael Nikiforides, the director of South Sky Investments, which is the Niecon-related company behind the Oracle, placed the venture in voluntary receivership last month.

It is understood the developer had secured about $160m from 400-odd presales within the 505-apartment complex.

Date: 20 January 2011 | For the full report, please visit http://www.theaustralian.com.au

Blame game over Perth city tower

THE receiver of the $500 million Raine Square project in Perth’s CBD has rejected claims by developer Luke Saraceni.

Mr Saraceni has said Bankwest ignored his refinancing proposals in order to take control of the asset at the cheapest possible price.

KordaMentha principal Mark Korda said proposals by developer Westgem Investments, jointly owned by Mr Saraceni and fellow developer Hossean Pourzand, had been unsuitable for the banks, which appointed receivers on Tuesday.

The receivership was triggered when Westgem missed a $50m payment due on December 31, following delays to the troubled project caused by a bitter dispute between Westgem and original builder Salta Constructions.

“The banks have given them every opportunity to sell down assets or find a white knight to meet the payment,” Mr Korda said. “The banks were in very lengthy negotiations” with Westgem.

But Mr Saraceni accused the banks of failing to discuss his refinancing proposals. He questioned the motivation of the banks in taking control of the project, saying it was fully funded to completion and would generate a surplus.

“Over . . . months, Westgem had tried to engage with the security holders to progress a range of commercial proposals” intended to reduce the banks’ exposure and refinance the associated debt, Mr Saraceni said.

“The security holders did not at any time engage with Westgem” on any of these proposals generated by Westgem, he said.

Date: 13 January 2011 | For the full report, please visit http://www.theaustralian.com.au

Raine Square tower in receivership

RECEIVERS have been called in to the $500 million Raine Square development in the Perth CBD area, after the developers missed a payment.

Mark Mentha and Cliff Rocke of KordaMentha have immediately moved to manage the building site, after developers, Westgem Investments Pty Ltd, missed a $50 million payment on December 31.

Westgem is a company owned by prominent Perth property developer Luke Saraceni and his associate Hossean Pourzand.
The project’s financiers BankWest and Bank of Scotland International called in the receivers to Westgem.

“Under the facility agreement with Westgem, there’s been a breach now for some time,” Mr Mentha said.

“The financiers have been in protracted negotiations [with Westgem], affording every assistance and opportunity to sell assets or to find a joint venture partner or white knight but unfortunately they hadn’t been able to do that.”

Mr Mentha added that KordaMentha had been monitoring the project on behalf of the financiers for the past 18 months.

The building site has been affected by several delays and cost increases, including an eight-month delay last year when the original construction company, Salta Constructions, stopped work over in early 2010.

Building company Probuild took over construction in September 2010 and the receivers said it was making good progress, with the building scheduled to be completed by July this year.

In a statement, Saracen Properties, the parent company of Westgem, said it did not believe the appointment of receivers was necessary given the strong financial metrics of the project.

It added it had put forward a number of commercial proposals to BankWest which were being considered before receivers were called in.

The project is 80 per cent complete, and Saracen said it is fully funded for completion.

A spokesman for Bankwest said they were still looking at moving into the building early next year.

“Our overriding priority is to work closely with all our customers on a case-by-case basis to try and assist them with any difficulties that they may be experiencing, as we have done in the case of Westgem Investments.

“Bankwest also confirms it is the head tenant for the commercial tower in Raine Square and is excited about moving into our new headquarters.

“Our planned move is scheduled for early 2012 and we expect that the appointment of receiver and managers will cause no delays to this timetable.”

The building has 44,000sqm of office space – all of it already leased to BankWest which plans to move some 3000 employees into the 20-storey tower next year – and 13,000sqm of retail space, which has pre-leasing commitments of 70 per cent.

There will also be a 227-bay car park and a 650-seat food court.

Tunnel works that will connect the building to the new William Street train station are anticipated to be completed in 2012.

Date: 12 January 2011 | For the full report, please visit http://www.perthnow.com.au