ACT News


Lender's collapse forces sale of unit complex while still on drawing board

The proposed 12-storey Aalto Apartments development in Phillip is being offered for sale following the collapse of the Queensland financiers of the project.

The yet-to-be-built 278-apartment, two-tower project will be sold through a tender process closing on October 17.

The Gold Coast's LM Investment Management went into voluntary administration in March and creditors resolved to wind up the company in August.

The company incorporated a number of registered management investment schemes, including the fund that provided $1.7 million for the Canberra apartments.

Ray White Commercial Canberra director Andrew Smith said the company was selling the conditionally-approved development site on behalf of the agent for the mortgagee through open tender. He said he expected the 7056 square metre site to be attractive to large scale developers because of its proximity to the Woden town centre and planned expansion of Westfield Woden.

''There has been interest shown from both local and interstate developers,'' Mr Smith said.


While he could not provide the exact number of sold units he said there had been ''some pre-sales completed''.

The ACT Planning and Land Authority conditionally approved the development application on in March last year.

The approval was for a 12-storey building with 208 units and a childcare centre, and a nine-storey building with 70 units. It also included a crown lease variation and demolition of the existing building and structures on the site.

Balloon Aloft and Precious Momentz Child Care are in the building set for demolition if the project goes ahead following a sale.

LJ Hooker Project Marketing, appointed sole sellers for the development, had advertised apartments in the complex from the end of 2011.

The agency had said several apartments had been sold off the plan with a 5 per cent deposit, as is standard with new developments.

Apartments in the Townsend + Associates Architects-designed development are being advertised from $389,900 (one bedroom) and from $499,900 (two bedrooms).

The administrators of the fund involving the loan for the Aalto Apartments could not be reached for comment by the time of print.