Altis pick up Completed Unsold Units
Altis Property Group have acquired 61 completed but unsold units in one line from the receivers appointed to Developer Gondon after 18 months of work out by the bank.
The project which contains 130 apartments was completed in late 2017, however 66 of the apartments were able to settle following restrictive lending practices, tighter capital controls from China and falling valuations in an oversupplied market. A substantial number of pre-sale contracts were terminated due to the purchasers default.
The creditors, led by Pacific Alliance Group allowed the developer to continue to sell the product throughout most of 2018, however as the market dried up, few sales were able to be completed.
PAG appointed the receivers to the Developer and the Builder (a related party) with secured creditors owed $33.8M and unsecured creditors $23.0M. According to the receiver the market value of the stock was $52M.
Altis Property Group picked up 61 units in one line for $35.0M, which effectively repaid the secured creditors. At an average price of $573,000 per unit, the discount to market represents approx 32%.
Altis intend to hold the units as leased investment stock and await a better market.
Colliers handled the sale of the site for the receiver.