The fallout being felt by the Queensland property sector from the global financial crisis shows no signs of abating, with the Whisper Bay development at Airlie Beach the latest to collapse.
According to a report in The Australian, the $282 million project was completed last December, but earlier this month the project’s banking syndicate demanded repayment of a $180 million loan facility.
Whisper Bay was built by property developer Rory O’Brien. “This landmark project was delivered on time and on budget in December,” he told the newspaper.
“But unfortunately we’ve been caught in the perfect storm, right at the height of the global financial collapse and simultaneous complex takeovers and nationalisations of the banking syndicate involved.”
One of the main lenders to the project is BankWest, which has sold by Halifax Bank of Scotland to Commonwealth Bank in late 2008.
It has been reported that one third of the 104 luxury apartments have been sold. Former prime minster Bob Hawke has purchased an apartment in the development.
Insolvency firm KordaMentha is acting as receiver.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
