Caydon bought the Nylex site, a former malt factory, in 2014 for $38 million and is halfway through transforming it into the multi-million dollar residential, commercial and hotel complex.
Heritage Victoria approved plans for the area which required the developer to keep intact most of the concrete silos under the Nylex clock sky sign, once earmarked for demolition, due to their importance as a marker of Richmond’s industrial past.
The group has already completed a 14,000 sq m office tower which it previously sold to global investment house AXA and leased to accounting software company MYOB.
The rising number of property-related collapses in Victoria follows a slower-than-expected recovery from the COVID-19 pandemic.
Earlier this month, another major private developer, CBD Development, put six companies that rely on rental income from commercial and residential tenants into liquidation, blaming government rent relief measures and the pandemic for its failure
It followed the collapse of housebuilder Langford Jones Homes owing creditors more than $10m just days after another Victorian builder, Snowdon Developments, also went into voluntary administration, leaving 550 homes unfinished and 262 Creditors are owed $17.8 million.
Caydon was turned down by Asia-based financier OCP Asia, the lender that spun off high-flying developer Steller three years ago, whose flagship project was the redevelopment of the historic Hotel Continental in Sorrento.
Steller, led by Nicholas Smedley and Simon Pitard, owed OCP Asia $97.3 million. It is not known at this stage how much OCP Caydon owes.
McGrathNicol partner Matthew Hutton said he had direct or indirect control over the Caydon assets secured by OCP, including completed residential and commercial properties, development sites and land holdings.
“The trustees are carrying out an urgent financial assessment of the properties and assets under their control. We will work constructively with all interested parties, including financiers of individual properties, to ensure the best possible outcome for all parties.” , Hutton said.
Jirsch Sutherland liquidator Malcolm Howell said current contractual arrangements with buyers of the Caydon properties, whether pre-sales or finished stock, “should not be affected”.
Business Briefing offers top stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.