REMI Capital's woes worse than anticipated as debts blow out to $124 million

The voluntary administrators of boutique investment firm REMI Capital have confirmed the company’s debts are worse than initially reported, with $124 million owed to creditors - up from $70 million announced in late-May.

The firm, which was rattling the tin just months ago, called in voluntary administrators on 24 May, leaving 433 noteholders in the lurch.

In a presentation seen by Business News Australia, voluntary administrators Jirsch Sutherland confirmed REMI’s total debt burden has jumped to $124 million, including $62 million owed to noteholders, $6 million to taxation and statutory authorities, $1 million to employees, and $2 million to other creditors.

The liabilities are spread across four core entities, being ultra high net worth family concierge Aurum Private Wealth, REMI Capital VIC, and property funds REMI Property and ATF Duke Street Shopping Centre Trust.

Contrary to media reports, Jirsch Sutherland claims that not all 433 noteholders will be left hanging. It has confirmed that 259 of them are located in Victoria, 110 in Queensland, 43 in New South Wales, eight in Western Australia, eight in Tasmania, four in South Australia and one in the Northern Territory.

Forensic investigation into REMI’s collapse is ongoing, and administrator Chris Baskerville will eventually prepare a 439A report which will assist creditors in making an informed decision about the company’s future and whether they will accept a compromise of their debt claim in the form of a deed of company arrangement proposal.

REMI’s collapse is one of the latest in a string of failures for the property industry, including Gold Coast builders Pivotal Homes and Condev Construction, Sydney developer Next and the Australian arm of Wilson Bayly Holmes - Ovcon Limited (WBHO) which included brands Probuild, Monaco Hickey and WBHO Infrastructure.

Melbourne-based REMI Capital was founded in 2016 by Peter Terrill when it was then known as C2 Capital, an Australian and Asian-focused private equity investment firm. The company has no connection to C2 Capital Partners, associated with Jack Ma’s online retail giant Alibaba.

REMI Capital, which also has an office in Brisbane, describes its business as offering investment opportunities in the boutique property development, healthcare real estate, and operations sectors. The company is understood to have employed a team of more than 50 investment, venture capital and property professionals seeking opportunities for investors.

Among the company’s biggest projects was the Rockbank town centre development in the city of Melton, one of many in Melbourne that included mixed use projects, office developments and land subdivisions.