[CAN] New Mayfield | 41-61m | 11-17lvls | Mixed Use

[Ben]

From the advertiser:

Investor fury rising over delayed New Mayfield apartment and hotel project

Renato Castello, The Advertiser
43 minutes ago

PATRICIA Dadds flicks through a folder filled with interior design inspirations for her city apartment she fears will never be built.

The folder of magazine clippings, apartment plans and designs is what she has called “dream book” and it appears dreaming is all she can do.

Mrs Dadds and husband Brian are among dozens of investors who had been anticipating spending Christmas in their new apartment in the $300 million New Mayfield development but are now considering pulling their deposits from the project.

Purchasers of the off-the-plan apartments in the Sturt St project are expected to know formally within weeks if the project will go ahead.

“I’ve always had a urge to be in the city and when this place came up I thought ‘this is the one’,” Ms Dadds, 77, of Linden Park said. “Our expectation were to be in there by Christmas.

“We are ageing, we don’t want to spend our time in the garden, making sure all the leaves are swept up ... we want to spend our last years enjoying ourselves.”

The fate of the New Mayfield project — one of the largest of its type in Adelaide — has been in limbo since builder and major shareholder Tagara Builders collapsed in June.

The first stage comprising 108 apartments over nine storeys was slated for practical completion on December 1.

But the only work completed on site is a hole in the ground and investors are now demanding answers as to when construction will begin and be completed.

“Nobody is giving us any information about what is happening,” Mrs Dadds, who with her husband had paid $58,800 deposit for a two bedroom, two bathroom apartment.

They are among nearly 100 investors who have paid close to $4 million in deposits and bank guarantees, which have been sitting in a trust fund.

She has started looking at other apartments and was disappointed in the lack of information from developers over their investment.

Renae Bieg, 26, said she paid $30,000 three years ago to secure a one-bedroom apartment in the property, which would have been her first property.

She has since moved into a neighbouring apartment development with her boyfriend and said she was “keen” to get her deposit back.

“It’s very hard to get any information off them, they won’t tell you anything,” she said.

The New Mayfield project involves three stages comprising 388 apartments, a 200-room Marriott hotel, and shops.

But the project stalled when developer Sturt Land, in which the former Tagara Builder directors had shares, went into receivership following the collapse of Tagara.

Receiver BRI Ferrier appointed Watpac to undertake some site works last year but the builder told The Advertiser it was no longer involved in the project.

The Sunday Mail reported in January that project financier Forum Partners wanted to take over management of the project and restart construction at the site as soon as possible.

At the time spokesman Andrew Faulk said that there was no bank debt in the project and that it was his firm’s intention to continue the project on the back of strong pre-sales.

The Advertiser was unable to contact Mr Faulk for comment.

Marriott Hotel group confirmed it was “still committed” to a hotel on site.

[Jaymz]

Coincidentally, i'm not sure. But the gates are open on the compound today, and a ute, bobcat and a few workers are inside. This one just gets stranger by the day

[Dvious]

Maybe they are looking for gold?

[Ben]

Buyers have received official notification they are now able to request their deposits back. They were not able to find a builder within the budget.

[Ben]

This is happening all too much lately.

U2
Palladium on Light
New Mayfield

These failed project really hurt the confidence of people to buy off the plan.

Financier of $300m New Mayfield apartment and hotel development in Adelaide find builder, investors able to terminate contracts

Renato Castello, The Advertiser
an hour ago

DOZENS of investors in the $300 million New Mayfield development will be able to terminate their contracts and seek refunds ending years of uncertainty over the future of one Adelaide's largest apartment and hotel projects.

The receivers for Sturt Land, the failed developer behind the Sturt St project, has today written to investors advising them that the development’s financier will not extend the “proposed practical completion date” of the project.

“Many purchasers are already frustrated with project delays and lack of clarity about the project’s future,” BRI Ferrier wrote in a buyers’ update.

“The mortgagee has decided the pre-sales extensions may not be beneficial to any of the parties and may lead to further frustration.

“The receiver and mortgagee recognise the outcome is disappointing for all parties.”

But BRI advised that the release of deposits was “subject to any rights the seller has under the contract”.

However it later told The Advertiser that the “full deposit” would be returned to each investor, plus interest.

The New Mayfield project involves three stages comprising 388 apartments, a 200-room Marriott hotel and shops.

Stage one — comprising 108 apartments over nine storeys — went on sale three years ago and was slated for practical completion on December 1.

There were 91 investors in stage one have paid close to $4 million in deposits and bank guarantees, which have been sitting in a trust fund, managed by lawyers Piper Alderman.

The fate of New Mayfield had been in limbo since its builder and major shareholder Tagara Builders collapsed last June.

In the buyers’ update BRI Ferrier said the financier, global real estate investment and asset fund Forum Partners, had not been able to replace Tagara “within the approved budget”.

But it appears Forum is not walking away completely as BRI Ferrier has advised investors that Forum will form a partnership with a “well-known and experienced developer/builder” and proposes to buy the site off the receivers.

“Subsequently, the partners will make an exclusive pre-market offer to all pre-sale purchasers upon finalisation of their plans for the project,” BRI Ferrier wrote.

Investor Patricia Dadds, 77, of Linden Park said she and husband Brian would seek to recover the $58,800 deposit they made nearly two years ago for a two bedroom, two bathroom apartment.

She said news that they could terminate their contracts was “bitter sweet” and that the experience had made her wary of buying off the plan apartments.

The Sunday Mail reported in January that project financier Forum Partners wanted to take over management of the project and restart construction at the site as soon as possible.

The Marriot group had told The Advertiser last month that it was still committed to the project.

[Jaymz]

Buyers have received official notification they are now able to request their deposits back. They were not able to find a builder within the budget.

Yep. And i'll be asking for mine back quick smart. And then i'll be buying one already established, no more off the plan for me. Over it!

[how good is he]

Heard that Hindmarsh has come in as [joint] developer and builder. I am guessing they may be working on new plans [maybe going higher?] and maybe a project name change?

[Pikey]

Make of this what you will, but there are excavators on site working away as we speak.

I wouldn't get too excited, they could be just removing spoil/contaminated soil etc.

[Allkai]

Make of this what you will, but there are excavators on site working away as we speak.

I'd make nothing of it, myself.......

[Jaymz]

Make of this what you will, but there are excavators on site working away as we speak.

I wouldn't get too excited, they could be just removing spoil/contaminated soil etc.

Yep, definitely wouldn't think anything of it.

I'd be almost certain that 100% of the buyers have now recouped their deposits, as I have done. They'd be mad to hang on and wait for some kind of new development on this site.

[timtam20292]

More work there today.

[EBG]

There is nothing happening at new Mayfield.Picture 27/March 2017.

[timtam20292]

What a sad site.

[Ben]

For sale:

http://www.realcommercial.com.au/proper ... -502350110

[timtam20292]

This site has now been sold.