“The receivers are conducting an urgent financial assessment of the properties and assets under their control,” Hutton said.
“We will work constructively with all stakeholders, including individual property financiers, to ensure the best possible outcome for all parties.
“OCP Asia intends to support the receivership process, including through the provision of additional funding, to ensure properties and assets can be advanced and maintained while development and/or disposal options are explored “, he said.
“One difficult situation after another”
In a statement, Caydon blamed Melbourne’s “prolonged COVID-19 lockdowns, accelerating construction cost pressures, supply chain disruptions and interest rate pressures along with a sentiment house price negative’ of its decision to appoint a liquidator.
“Since Caydon’s inception we have delivered amazing projects, including more than 3,000 apartments, hotels and offices, of which I am very proud,” said Joe Russo, CEO and founder of Caydon.
“Unfortunately, over the past few years, Caydon has had to deal with one difficult market situation after another. The last challenge we have really faced has been the pricing factors affecting the Australian property and construction industry.
“The significant disruption to our business created by two years of the COVID-19 lockdown in Melbourne has caused business uncertainty and severely impacted sales.
“The pressure on construction costs that has led to builder insolvencies and supply chain disruptions, and now interest rate pressures and negative house price sentiment, have put additional pressure on our operations
“It has been extremely difficult to make this decision, but to ensure the best possible outcome for all our partners and customers, we have had to begin the liquidation of part of our Australian business.
“We intend to work closely with the liquidator and all Caydon stakeholders during this period to minimize any disruption and are pleased to know that the active projects, being HOME in Alphington and Due North in Preston, will continue to run and the contractual agreements with our buyers will not be affected.”