The Orchid, Arncliffe resumes construction after Ralan collapse

The Orchid, Arncliffe resumes construction after Ralan collapse
The Orchid, Arncliffe resumes construction after Ralan collapse

Construction at the apartment project, The Orchid at Arncliffe, has recommenced after non-bank lender Wingate secured funding to complete the development.

Construction was halted in August after the Ralan Group collapsed owing creditors $500 million.

The administrators Grant Thornton signalled $70 million to $80 million was needed to complete the project.

Almost two-thirds of the 318 apartments and 13 out of 36 commercial units at The Orchid were sold off-the-plan, according to Grant Thornton.

At the end of August, Ralan's secured lender Wingate appointed Deloitte as receivers and managers of the development having previously appointed Deloitte as receivers of six other Ralan companies that hold land and other assets tied to Ralan's now-scrapped Ruby and Sapphire high-rise development on the Gold Coast.

A spokeswoman for Wingate confirmed that construction recommenced at The Orchid in late August "with the current program tracking towards completion by mid-2020".

"The development is approximately 50 per cent complete," she said.

"Richard Crookes Constructions is continuing as the builder of the development with work on site progressing well with [on average] 165 workers on site each day in the past week," she said. "Details regarding the financing of the development are commercial in-confidence."

At the same time as construction restarted at The Orchid, Deloitte, as receivers, has appointed ResortBrokers to sell management rights to the only completed tower at Ralan's now mothballed four-tower Ruby Collection project on behalf of Wingate. The 30-level tower was completed last November and includes 230 apartments.

Tags: 
Arncliffe The Ralan Group

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