JUNIPER Development Group’s (JDG) $850 million Soul Tower (pictured) has entered receivership.
Creditors today appointed PricewaterhouseCoopers (PwC) partners Michael Fung, Derrick Vickers and Greg Hall as receivers and managers for the 77-storey luxury residential development in Surfers Paradise.
JDG allegedly owes an undisclosed sum to Morgan Stanley, National Australia Bank and ING.
The project had secured $400 million of pre-sales before the building was constructed in 2006-07. However, some buyers have been unable or unwilling to settle on purchases after the Queensland property market crashed in the global financial crisis.
“The challenges facing the real estate market in the Gold Coast area are well known and have been impacting the major developers in the area for some time,” says Fung.
“These challenges, together with the slower than expected completion and delays in settlements on pre-sold stock, means that the receivership of this world-class development is unsurprising.”
He expects acquisition interest from high-net worth parties.
“Assets of such premium quality as Soul are rare, and we expect the remaining apartments will command significant attention from both domestic and international buyers,” he says.
JDG did not return calls.
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