Sensational-Adelaide.com

Ben wrote:Agent said they are currently under grounding the power lines in order to get machinery on site. Seems a bit Wierd as no other sites that I know of have had this issues. They said there will be a tower crane early in the new year. Talk about snail pace.

Financier Forum Partners wants to restart New Mayfield apartment project held up by Tagara collapse
January 17, 2016 12:00am
Cameron England

GOING UP: New Mayfield House will comprise 108 apartments over nine storeys while the second stage, Granary House, will have 74 apartments.

ONE of the city’s largest apartment and hotel developments looks set to go ahead despite the collapse of builder and major shareholder Tagara Builders.

The fate of the $300 million New Mayfield project, on Sturt St, Adelaide, has been in limbo since Tagara collapsed with debts of $21.5 million last June.

But the project financier, Forum Partners, told the Sunday Mail it wanted to take over management of the project and restart construction at the site as soon as possible.

The hotel group which plans to build a new Aloft-branded hotel on the site, Starwood Hotels and Resorts, also said it was committed to the New Mayfield development.

Forum appointed a receiver to Sturt Land Pty Ltd, the company which owns the project, on December 23.

The receiver, BRI Ferrier, will now have to assess what the company owes and who should be paid in what order.

But Forum spokesman Andrew Faulk said the finance deal put in place meant Forum had a “preference equity’’ interest, which meant it could take control of the project.

Mr Faulk said he could not pre-empt what the receiver would do, but Forum was keen to go ahead with New Mayfield. There were pre-sales of about 85 per cent for the first stage of the development, and Forum still saw the project as attractive.

“We were an investor alongside a development consortium that was anchored by Tagara,’’ Mr Faulk said.

“There is no bank debt in the project. Forum has the ability to continue the project and at this stage it’s our intent to do so.

“It’s a pretty exciting project, there’s a high level of pre-sales for stage one and stage two has been anchored by a Starwood-flagged hotel.

“Our process at the moment is to ensure the key stakeholders, such as the purchasers and Starwood, are comforted that the state of the project is stable.’’

Stage one, New Mayfield House, comprises 108 apartments over nine storeys. The second stage, Granary House, would have 74 apartments.

A 200-room Aloft hotel was also planned for the site.

Starwood spokesman Andrew Taylor said the hotel group only recently learned of the receivership but said: “Starwood remains committed to the project ... our hotel agreements remain on foot.

“We really would love to see the project go ahead so we’re working with the stakeholders to ensure that happens.’’

The New Mayfield Project could create up to 1200 jobs during construction and 130 after completion. It is unclear at this stage whether there will be a return to the creditors of Tagara Builders from the receivership process.

adel aide wrote:Has anyone on this forum bought one of these apartments?
What has been the communication to you from the developer?
What sort of sunset date do you have on your contract if this remains in limbo for some time?

gmf wrote:

adel aide wrote:Has anyone on this forum bought one of these apartments?
What has been the communication to you from the developer?
What sort of sunset date do you have on your contract if this remains in limbo for some time?

We've bought one of the apartments. I just stumbled across this article online and this is the first I've heard of these issues. We were under the impression that all of the issues were now sorted with the appointment of Watpac as the new builders. I also note that their Facebook page has been pulled (https://www.facebook.com/NewMayfield/). The last I heard (via Facebook - we actually haven't heard anything official since paying the deposit ) was that a crane was due to be brought into the construction site "very early in the new year".

The sunset clause is years in the future... will have to follow up with NM