Another Queensland property developer in trouble
Thursday, 9 October 2008
James Thomson
Queensland: Beautiful one day, poison for property developers the next.
Just weeks after the collapse of Gold Coast projects that were being developed by veterans Jim Raptis group and Sydney developer Mick Bezzina, three developments by Brisbane-based developer Petrac have been placed into receivership.
According to The Australian Financial Review, National Australia Bank has appointed Ferrier Hodgson as receivers to Petrac’s $200 million Noosa North Shore Resort and Beach Road Holiday Homes projects in Noosa, and the company’s Seacliffs residential sub-division at Byron Bay.
Petrac’s executive chairman Peter McAvoy told the paper that the projects had hit funding difficulties and particularly a slump in tourism at Noosa.
“Petrac’s view, from what we have seen, is there will be no recovery in the short to medium term. The property market will find it significantly harder to raise debt and refinance existing projects.”
Petrac has cut up to 30 staff in the last six months.
Ferrier Hodgson says it will look at options to keep going on the projects.
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