The future of Australia’s tallest residential building project is now even more uncertain after its project manager’s creditors voted in favour of a proposal sell the Melbourne Southbank site.
Beulah International, the Malaysian-backed developer proposing the $2.7-billion Sth Bnk project, called in administrators for its project management arm in February.
The company, BSSPV, collapsed with debts of more than $100 million.
Creditors voted this week in favour of the director's proposal to sell the site despite it granting them just a quarter of the debt that they are owed.
Many of BSSPV’s creditors are related to other entities in Malaysia connected to Beulah but around $5.3 million is owed to several Australian-based businesses.
Those creditors include Cox Architecture, AECOM, KPMG Financial Advisory Services and UN Studio.
As reported in other media, Cox is owed $616,322, UN Studio is owed $334,494, AECOM $362,181 and KPMG $364,650.
How much creditors will receive will depend on what is raised through the sale of the site.
Approval of the proposal means deed administration can now begin.
Once this deed of company agreement is formally executed within 15 business days, control of BSSPV will return to the director of the company, meaning BSSPV will exits administration.
The site is the former BMW showroom on City Road in Melbourne’s Southbank and is owned by another Beulah company, SB Nominees.
SB Nominees is not in administration and will be open to selling the entire site or taking on a partner as part of a joint venture with Beulah.
Settlement is expected to occur within 18 months but the sale option means creditors would get more than if they chose to liquidate the company.
Early works were expected to start on the project this year with a $35-million sub-penthouse and pre-sales already completed.
The project consists of two towers with amenities including a luxury car fleet and a hotel component.
There will be a planned 27,000sq m of office space, 21,000sq m of retail, 202 hotel rooms operated by the Four Seasons and 789 apartments ranging from one bedroom to five bedrooms.
When the project launched in April of 2022, Beulah had a record $400 million in pre-sales with buyers expected to put down $5000 as a deposit to register.
Many bought several apartments intending to combine them to create larger spaces.
