Sunland acquires first mortgage over LM Investment Management’s Maddison Estate

Listed Gold Coast developer Sunland entered into a conditional agreement earlier this month to acquire the first mortgage over Maddison Estate, the flagship residential development of collapsed developer and funder manager LM Investment Management.

Sunland will pay $24.75 million to acquire two unrelated Suncorp mortgages, one over Maddison Estate in Pimpama and another over Brisbane residential development Waterline Estate at Redland Bay.

Waterline Estate is a residential community at Thornlands developed and managed by Queensland developer Heritage Pacific and forms part of its $8 million Waterline Trust.

LM Investment Management, which managed the fund behind Maddison Estate was placed in liquidation by creditors last week.

KordaMentha and its affiliate firm Calibre Capital were appointed joint trustees of the $350 million Gold Coast-based LM Managed Performance Fund (LMPF) by the Queensland Supreme Court in mid-April.

The proposed $1.5 billion Maddison Estate project formed part of the LM Managed Performance Fund, which now in the hands of trustees David Winterbottom and Simon Vertullo of KordaMentha.

It is due to feature 1,500 homes.

In a statement Sunland said it intended to appoint the necessary advisers to realise the value of the loans over these developments.

The Gold Coast Bulletin reported that acquisition of the loans would allow for the two developments to proceed with managing director Sahba Abedian saying all possibilities were being reviewed.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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