Estate Property Group was a substantial property investment fund, with a large number of secured lenders and mezzanine investment provided by way of a debenture fund. ECA had accumulated a substantial portfolio of property assets including over 320 completed and partially completed residential apartments.
Following ASIC issuing a stop order in respect of the Group’s prospectus, the Group lost its ability to raise mezzanine / retail debt, and Voluntary Administrators were appointed.
- Established effective communication channels and reporting to the 12 senior lenders, the Administrators of the mezzanine funder and ASIC;
- We continued managing construction of the Group’s partially completed projects (including three high rise developments);
- Attended to general property management issues including; co-ordination of leasing and selling agents, completing pre-sale contracts and liaising with town planners, architects and councils on development issues.
- We offered the Group’s residential properties (totaling 321 apartments) for sale as a portfolio and undertook extensive negotiations with a range of institutional investors on different sale / purchasing structures;
- Implemented a complex DOCA structure to facilitate the repayment of Lenders and investors.
Ultimately, first ranking Lenders were repaid in full, and debenture investors received a significant distribution.