Real estate developer Ralan Group, based in Sydney, collapsed, leaving behind billions of dollars worth of projects. The promoter owed approximately $ 500 million to creditors, including Big Four Bank, Westpac and non-bank lender Wingate.
Grant Thornton's Said Jahani, Phil-Campbell Wilson and Graham Killer have been appointed directors of the Ralan Group and more than 50 of its subsidiaries.
"At this point, we can reveal that the directors (of Ralan) felt that the company was in a difficult financial situation and decided that voluntary administration was the best way forward, as the companies were insolvent or likely to become so, "Jahani told The Australian Financial Review.
Early indications confirmed that Ralan owed about $ 500 million, Jahani said.
Ralan currently has 3,000 residential units under construction or presale.
Those who purchased completed apartments would probably not be affected. However, according to Jahani, future prospects are not clear for those who have unexpectedly bought developments in Ralan.
"We are still studying different options for other projects under development that have not started yet but have already been sold in advance", a- he declared.
According to Jahani, the development of a Ralan project in Arncliffe, in Sydney's southern suburbs, was also uncertain.
"We are discussing with the relevant stakeholders how best to proceed on this project to preserve value," he said.
Ralan's collapse is the latest in a series of builders and developers facing financial difficulties as a result of the market downturn.
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