Non-bank lender Metrics Credit Partners has reportedly called in a high-end residential project, highlighting the difficult trading environment even for luxury developers.
The project is the $300-million Nautique luxury apartment development in Sydney’s Rushcutters Bay.
Nautique was spearheaded by JDH Capital, the investment firm led by former Macquarie Group banking executive Jean-Dominique Huynh.
The project involved the redevelopment of the Vibe Hotel on the site, which JDH acquired for $123 million in 2023, and which was completed last month. according to builders Richard Crookes Construction.
JDH is best known for the Sirius Building project—the adaptive reuse of a housing commission block into 76 luxury apartments overlooking Sydney Harbour. Huynh also made headlines last year after being revealed as the owner of the $35-million penthouse at Sirius.
Metrics has now reportedly appointed receivers Newport Advisory to the project at 100 Bayswater Road, Rushcutters Bay.
This is despite apparently strong sales, with 50 per cent of apartments sold before its official launch at a reported $140 million “in just hours” when it launched in 2021.
Metrics declined to comment to The Urban Developer on this most recent JDH Capital issues.
JDH Capital and Newport Advisory also did not return requests for comment.
It remains unclear whether Metrics has stepped in on other projects under the JDH Capital banner, including the Sir Stamford Circular Quay hotel, which was acquired for an adaptive reuse development by JDH in 2022 for $210.5 million.
However, Metrics has been more outspoken on previous projects in which it has become involved.
The lender has been tied to a duo of Melbourne projects in recent months, including Orb Property’s 1.4ha North Melbourne development site, which will deliver 500 homes, and APH Holdings’ Box Hill development of a Novotel-branded hotel.
Metrics Real Estate Multi-Strategy Fund, which is listed on the Australian Stock Exchange after an IPO in October of 2024, posted clarifications regarding Orb’s Melbourne project last week to the ASX.
Its MCP Real Estate Debt fund provided a land loan which included a first registered mortgage over the 14,000sq m aggregated site of predominantly vacant land, it said.
The $41-million loan was provided to Orb in 2022, but the loan amount outstanding on the repayment date in December 2024 increased as a result of the accrual of interest and fees.
The borrower, ostensibly Orb, defaulted on the loan and receivers were appointed.
A special purpose vehicle was organised by a Metrics fund to bid in the sale process managed by the receiver and acquired the site for $53.4 million, excluding GST.
Metrics emphasised that it did not enter into a facility to finance construction of the project, instead appointing independent parties to manage the enforcement, but it did recover 100 per cent of the amount owed to it under the loan facility.
It’s not just property feeling the heat—last year Metrics took over operations of the Rockpool hospitality group from Quandrant Private Equity.
Meanwhile, Metrics has entered a partnership with Billbergia for an 80-storey luxury residential development in Sydney’s Midtown, which was announced last month.
