Economy

Two more property projects in receivership

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Two more property projects from developer Petrac have been placed into receivership, leaving listed property group Valad further exposed to the ailing property market.

Two more property projects from developer Petrac have been placed into receivership, leaving listed property group Valad further exposed to the ailing property market.

Greg Hall and Ian Hall of PricewaterhouseCoopers have been appointed as receivers to Petrac’s $200 million housing estate development at Lennox Head in northern New South Wales. The receivers were appointed by The Royal Bank of Scotland.

Greg Hall told The Australian Financial Review the land will soon be put up for sale to private, corporate and institutional property players.

Meanwhile, Ferrier Hodgson has been appointed by National Australia Bank to Petrac’s 33-lot subdivision at Suffolk Park near Byron Bay. Petrac had planned a $70 million housing development on the site, which is also up for sale.

Last month Petrac had two of its biggest projects placed in receivership; its $200 million North Shore Resort and Beach Road Holiday Homes projects in Noosa; and the company’s Seacliffs residential sub-division at Byron Bay.

The collapse of these projects has hit Valad hard. It is the preferred equity lender on the projects and told shareholders at its AGM that its total exposure to Petrac was $76.2 million.

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