Melbourne developer Steller falls into receivership
Melbourne developer Steller has collapsed into receivership.
Steller had a reported $4 billion-plus worth of residential and commercial projects in the pipeline with a number of high-profile development vendors and acquisitions across Melbourne.
The decision comes a few days after their stalled $80 million joint development of the Conti Hotel in Sorrento (above) hit the market. It is owned by hotelier Julian Gerner who bought it from the Di Pietro family in 2015.
Gerner had embarked on a $150 million end-value restoration and redevelopment before Steller bought into the project in 2017.
Stellar was founded in 2006 by Simon Pitard and Nicholas Smedley who dissolving their partnership and selling all undeveloped assets.
Financial trouble has been cited as the likely cause.
Credit fund manager OCP Asia, who provided funding to Stellar, appointed receivers McGrathNichol Restructing to secure their position, the Australian Financial Review has reported.
The Australian reported OCP lent around $120 million. Sydney-based fund manager Atlas Advisors also lent to Steller. Atlas Advisors has advised it was not a principal lender but ran bespoke funds built to cater for the differing appetites of investors.
"The receivers are undertaking an urgent financial assessment of the assets under their control," McGrathNicol partner Keith Crawford said in a statement.
"We'll be working constructively with all stakeholders, including financiers of individual properties, to secure the best possible outcome for all parties."
OCP Asia said they will support the assets during the receivership process, providing "additional funding to ensure the assets can be maintained while options for recapitalisation, development and/or disposal are explored".
Based in Caulfield East, Steller had projects in nearby Carnegie and Bentleigh and recently completed developments in Glen Huntley and Hawthorn East.
Guy Hedley, the executive chairman at Atlas, has since publication of their involvement, noted "Steller is going through a process of dissolving its partnership.”
“However Atlas is confident the matter will be resolved and a recovery acceptable to our investors will be achieved.”
The Age has reported Atlas placed caveats last month on a series of properties owned by Steller or the subject of Steller property developments.
Atlas has caveats over a development site at 12-18 Craig Street, East Keilor, a series of houses on Riversdale Road, East Hawthorn, the Parkdale private hospital at 152 Como Parade West and properties in Bittern, Hastings and Mornington.