ASX-listed developer Land & Homes Group has entered voluntary administration after being unable to plug the funding gap on a brisbane project.
Land & Homes acquired 44-100 Barry Parade site in Brisbane’s Fortitude Valley for $20 million in 2016 and planned to develop 491 apartments.
It filed its plans for the site in 2017, detailing two residential towers of up to 26 and 37 storeys with three and four-storey podiums, and 163 one, 304 two and 25 three-bedroom units.
However, the pandemic proved an insurmountable obstacle for development funding, and the company blamed a “high level of fixed costs” with no indication when construction might start.
According to a notice to the ASX this week, Land & Homes said the project was put on hold when Covid hit and its ongoing feasibility was subsequently questioned.
With ongoing price escalation and “no confidence” that construction costs would materially reduce in the short term, Land & Homes found itself in a challenging situation, for which it required “significant capital” which was not readily available.
Despite engaging with several investors to pursue equity funding, it told the ASX, efforts fell flat, as did…
