Projects - Distressed Assets

Northeast Developments Pty Limited

Receivership of distressed retail centre


  • Retail shopping centre
  • Toongabbie, NSW
  • Receiver for financier
  • Senior debt ($50m)
  • Unsecured ($2m)


  • 8,000m2 neighbourhood shopping centre with two majors and 44 speciality shops, three levels of basement car parking (stage 1), and approval for 144-unit residential development above and adjoining (stage 2)
  • Appointed to manage defect rectification, secure pre-committed leases, lease up vacant shops and consider options for the residential site, which at the time of appointment was limited by an unfeasible design
  • Centre completed, but predominantly vacant and was very poorly designed.
  • Anchored by Woolworths, who were not required to pay rent until the ground floor was 75% leased
  • Specialty retailers claiming rent abatement due to the vacant nature of the centre. Centre was losing $1m pa


  • Retail – secured centre manager, several key tenancies (including second major) to activate rental payment under Woolworths lease, which resulted in breakeven position within nine months
  • Residential – amended planning approval to redesign and improve viability of stage 2
  • Sold the retail stratum and agreed delayed settlement terms above valuation for sale of the residential stratum


  • Identified off-market buyer at a 40% premium to residential valuation within 12 months

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