The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
10
print
Print
OtherTaryn ParisTue 26 Jul 22

Caydon Collapse Puts $1bn Nylex Project in Peril

Melbourne developer Caydon Property Group is on the ropes, falling into receivership this week with over a billion dollars worth of projects in peril.

The prolific apartment developer cited the pandemic, builder insolvencies and supply chain issues as the straw that broke the camel’s back, following the collapse of ProBuild, which had been engaged to build the iconic $1-billion Nylex building project in Melbourne. 

Receivers McGrathNicol and liquidators Jirsch Sutherland were appointed on Tuesday to take control of Caydon’s assets, including apartment projects under construction at Moonee Ponds, Preston and Alphington.

But Caydon managing director Joe Russo said HOME at Alphington and Due North at Preston, would not be affected by the collapse as they were “fully funded”.

“Sadly, over the last few years, Caydon has had to deal with one difficult market situation after another,” Russo said.

“The latest and really confronting challenge we’ve been facing has been the pricing factors affecting the Australian property and construction industry.

“It has been extremely difficult to make this decision, but to ensure the best possible outcome for all of our partners and customers, we have had to commence the liquidation of part of our Australian business.”

The Malt District Probuild
▲ Renders of the planned Malt District project.

Asia-based financier OCP Asia, which holds security over Caydon’s assets, tipped Caydon Property Group into receivership, tapping McGrathNicol partners Matthew Hutton and Matthew Caddy as receivers.

“The receivers are undertaking an urgent financial assessment of the properties and assets under their control,” Hutton said in a statement.

“We will be working constructively with all stakeholders, including financiers of individual properties, to secure the best possible outcome for all parties.

“OCP Asia intends to support the receivership process, including through the provision of additional funding, to ensure the properties and assets can be progressed and maintained while options for development and-or disposal are explored.”

Jirsch Sutherland liquidator Malcolm Howell said purchasers with contractual arrangements in Caydon projects should not be impacted.

Caydon acquired the former malt factory Nylex site in 2014 for about $38 million and was progressing its multi-million-dollar plans for the Malt District.

Probuild reached practical completion for The Malt District, a significant mixed-use precinct in the emerging office market at trendy Cremorne, in the weeks before its collapse.  

The first stage of the project, being developed by Melbourne-based Caydon, includes a 15 and 12 split-level tower featuring 200 one-, two-, and three-bedroom apartments, and lower-level retail and hospitality outlets.

It also included construction of a nine-level tower with 8800sq m of office space on the site’s south-eastern corner, which is now leased to software giant MYOB and sold to global investment house AXA in a fund-through arrangement.

The apartment developer had made its first move into the Gold Coast market late last year, filing plans for an 18-storey apartment tower at Miami.

It was not clear how much Caydon owed OCP Asia. 

ResidentialMelbourneAustraliaFinanceSector
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
Income growth and price dips have done little to improve the situation, according to fresh data from the Urban Land Inst…
LATEST
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
2 Min
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
3 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/caydon-collapse-nylex