The development company behind a massive gold coast project has called in administrators, leaving creditors owed about $80m.
Nerang Street, which is developing the $500m Queen Street Village at South Port, has been impacted by funding issues on top of dealing with the Covid-19 pandemic, according to The Australian.
Robson Cotter Insolvency Group said unsecured creditors were estimated at $40.8m, including construction firm Tomkin, which is owed $16.2m.
“The directors disclosed the main reasons for the company’s financial circumstances included a change in property market valuations, inability to meet funding arrangements and prior to that, the general impact of the Covid-19 pandemic,” a report to creditors said.
Secured creditors are owed about $43m, including $22m to Hutchinson Builders.
Colliers said it was under the instruction of the mortgage exercising power of sale to sell three adjoining sites totalling 5401sqm.
Nerang Street creditors will meet next Tuesday to decide whether to liquidate the company or arrange for a deed of company arrangement.
The first stage of the village recently opened with a Supa IGA supermarket, Dendy Cinemas and other retailers.
Nerang Street is just the latest Australian construction firm to…
