Buyers into a planned apartment complex in Tuggeranong's Southquay precinct have had their contracts torn up, after the developer conceded it would not be able to deliver the project on time.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Developer Empire Global had earmarked a 2019 completion date for stage one of the Jardin development, which was to include 237 units, terrace homes and rooftop gardens at the corner of Anketell Street and Oakden Street.
But the project has yet to get off the ground, and now, in a letter sent to apartment buyers before Christmas, lawyers for the property group said it would be unable to deliver the project by the "arrangement date".
The letter from Meyer Vandenberg lawyers, seen by The Canberra Times, said the developer had exercised its right to rescind the sale contracts, and would refund deposits to buyers within the following 32 days.
The decision has cast doubt on the future of the wider Jardin project, which was to feature a 12-storey, 339-unit apartment block as part of its second stage.
The move has been met with surprise and anger by some apartment owners, who were given no prior indication of Empire Global's apparent intention to abandon the project.
Kathleen and Andrew Bennett paid $255,000 for a one-bedroom apartment at Jardin in April 2017, which they intended to use as an investment property.
Ms Bennett said the couple wanted to retain the contract in the hope the project would eventually be completed, but were given no opportunity to negotiate a compromise with Empire Global.
"There was no ability to negotiate. All we were given were instructions for how to receive a refund," Ms Bennett said.
"I understand that some people might have been pleased that they were able to break the contract, but not for us. Time was not really a concern, it was an investment property.
"It would be really lovely to at least understand what was happening, and to have some transparency around it because the whole process was not transparent at all."
Ms Bennett said she would have to pursue stamp duty compensation through the ACT Revenue Office.
Rising property prices meant it would be almost impossible to find a new one-bedroom apartment in the $250,000 range, she said.
She said the development's real estate agent, LJ Hooker, had attempted to keep owners informed of the progress of the project, and appeared to be taken by surprise by Empire Global's decision.
The agent sent regular updates to buyers about the project's status throughout 2018, including a June 1 email which stated the developer was launching a "multi-national campaign" to find a partner to help deliver the development.
In that email, obtained by The Canberra Times, LJ Hooker's projects ACT managing director, Andrew Ligdopolous, said the move was likely to "hasten the commencement of construction of the landmark project".
Buyers were told in late August that Empire Global was assessing its options after receiving strong interest from prospective project partners.
In a December 5 email, Mr Ligdopolous said the agents were "doing everything possible" to get information about the project, and had been told Empire Global would be able to provide "concrete" details by January.
On December 20, the same day as Meyer Vandenberg's letter was sent to solicitors acting for the buyers, Mr Ligdopolous sent another update.
"We ourselves were only informed that this correspondence [the letter] was going to be sent to your solicitor in the past 24 to 48 hours," he said in an email.
"We are very disappointed with this outcome and the decision that has been made by the developer about the project."
Empire Global - which did not respond to enquiries from The Canberra Times - is also behind the 18-storey Air Towers development in Gungahlin, which is slated for construction in 2019.
