Land linked to Porter Davis Homes has hit the market as receivers try to recoup money for the collapsed builder’s biggest secured creditor, the Commonwealth Bank.
The 8.09ha ‘urban growth’ zoned site at Craigieburn in north-western Melbourne would suit residential development, receivers KPMG said.
CBRE has been appointed to run the sale, which will be via an expressions of interest campaign.
KPMG partner David Hardy said that as the 1360-1370 Mickleham Road site was largely surrounded by established residential subdivisions by notable groups including Stockland, PEET, Ho Bee Land and Potter George Group “we expect strong demand from all the major developers in the market”.
CBRE selling agent David Minty said demand for suitably zoned land for residential subdivision had never been stronger, with developers keen to feed their pipelines.
“This was evident as part of the nearby Aitken Hill sale campaign which yielded 12 offers and was sold on an unconditional basis for $142 million to Singaporean developer Ho Bee Land.”
KPMG said NZ-listed aged-care and retirement living company Summerset Group recently acquired an 8ha site at 1480 Mickleham Road for $32.45 million.
CBRE land sales director Nathan Mufale said he expected plenty of interest in the site as it was development-ready in an already hot property market.
“We are seeing record sales results for land in Melbourne’s north-west corridor in particular and this is prime real estate.”
It’s been reported the receivers could expect at least $16 million for the site, which is close to Melbourne Airport, rail and road networks, and sits within the Craigieburn West Precinct Structure Plan.
Porter Davis Homes—Australia’s 13th largest home builder—collapsed in March with 1700 projects and 779 blocks of land on its books across Victoria and Queensland.
It owed a reported $146.5 million, including $57.5 million to two secured creditors, the Commonwealth Bank [$32.9 million] and another company, Chesapeake [$24.6 million].
About $18 million was owed in unpaid wages, leave and superannuation.
Only the CBA was expected to be fully paid back, it was reported.
Chesapeake and employees would receive a “partial dividend” as they were priority creditors.
Everyone else—estimated to be more than 1000 unsecured creditors—had been warned to expect nothing.
