Caydon Property Group collapses, but major Melbourne projects will be executed

Caydon Property Group collapses, but major Melbourne projects will be executed

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

“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,” he said.

‘One difficult situation after another’

In a statement, Caydon blamed the “prolonged COVID-19 lockdowns in Melbourne, accelerating construction cost pressures, supply chain interruptions, and interest rate pressures coupled with a negative house price sentiment” on his decision to appoint a liquidator.

“Since the inception of Caydon we’ve delivered some amazing projects, including over 3000 apartments, hotels and offices, all of which I am immensely proud of,” said Caydon managing director and founder Joe Russo.

“Sadly, over the last few years, Caydon has had to deal with one difficult market situation after another. The latest and really confronting challenge we’ve been facing has been the pricing factors affecting the Australian property and construction industry.

“The significant disruption to our business created by two years of COVID-19 lockdowns in Melbourne has caused business uncertainty and severely impacted sales.

“Pressure on construction costs resulting in builder insolvencies and supply chain interruptions, and now the interest rate pressures and negative house price sentiment, has placed additional pressure on our operations.

“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.

“We intend to work closely with the liquidator and all of Caydon’s stakeholders throughout this period to minimize any disruption and are pleased to know that the active projects, being HOME in Alphington and Due North in Preston, will continue to be executed and the contractual agreements with our buyers will not be impacted.”

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