53/53 Pty Ltd Liquidation - Southbank Estate, Southern River, Perth

Discussion in 'Investor Stories & Showcase' started by kreepy1, 15th Aug, 2019.

Join Australia's most dynamic and respected property investment community
  1. kreepy1

    kreepy1 New Member

    Joined:
    5th Jan, 2016
    Posts:
    2
    Location:
    Perth
    Anyone else affected?

    53/53 Pty Ltd were offering a 50% developer discount by pre-purchasing a block in the Southbank Estate in Southern River - Developer Discount Deal

    There was an old Somersoft thread discussing this - Landbanking Perth @ 50% Discount

    I pre-bought a block in the Southbank Estate from 53/53 Pty Ltd in 2016 through my SMSF, and just received news that the bank had called in the loan and forcibly sold the estate for 50% of it's value, and 53/53 Pty Ltd has been placed into liquidation
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,484
    Location:
    Perth
    Oh ****. As saw as I saw the thread title I wondered if it was that landbanking deal.

    Was it really 50% of it's value it was sold at? Do you know the details? 50% of what they bought it at??
     
  3. kreepy1

    kreepy1 New Member

    Joined:
    5th Jan, 2016
    Posts:
    2
    Location:
    Perth
    No, I don't have much details unfortunately. 50% is what was stated in an email from the director of the company. According to the liquidator's Statutory Report, the sale of the land by the bank is expected to settle at the end of the month.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,484
    Location:
    Perth
    I had a look online and couldn't see a settled sale so I was curious.

    Lot 1792, Holmes Street, Southern River, WA 6110

    Doesn't look like much has happened since advertised as Southbank. I can't see an approved structure plan for it so not much has been achieved since the deal first got off the ground. It was listed for sale October last year so they've been trying to sell it for awhile.

    I suspect that more information will slowly trickle your way but I'm not sure you'll get any money back.
     
  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    9,669
    Location:
    Sydney
    A 50% discount would have been first indication of concern. And indicates the the land was probably only worth 50% of the asking price. I will guess and say they targetted smsfs and others with cash as valuation issues can be disguised. as an independent valuation isnt then obtained. That how the gold coast scams all originated. Any advisers involved ? They may have PI involvement.

    Where is the deposit ? On trust account or in the developers hands ? Rule one is leave proceeds on trust until land is transferred for this reason. Depending upon the lenders (if any), land tax, rates and other issues you may even have a secured interest / preferential claim but may just rank equally with other creditors and get cents / $$$ after liquidator costs are discharged.

    Not sure what an smsf investment strategy would be for vacant land. Is the auditor going to qualify their audit opinion ?
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    9,669
    Location:
    Sydney
    ASIC show the company is under administration, not yet a liquidation although the court seems to have approved that in May. Maybe.

    You should search ASIC for the insolvency firm and Partner and contact them and seek to make a claim. Sometimes they will have poor records and be wanting parties to contact them. ie Public Notices in paper, gazette etc. There appears a preliminary report to creditors. Get cracking to make a claim.

    Neil Cribb or Ashlyn Stevens of RSM Perth is (was) the insolvency practitioner to contact :)
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,484
    Location:
    Perth
    I suspect there were more than 3 people out there who went in on this even though they only had 3 such opportunities.