ARENA EQUITY PTY LTD (developer) good/bad reviews

Discussion in 'Development' started by LoanSharkJR, 16th Aug, 2017.

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  1. LoanSharkJR

    LoanSharkJR Well-Known Member

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    One developer in Croydon is a developer called Arena Equity pty ltd - We would like to know more about them and their previous clients satisfaction before we use their service.
    Has anyone engaged this company before?
    Should we ask them for their previous clients directly so we can ascertain their build quality and reputation?
     
    Last edited by a moderator: 27th Jun, 2018
  2. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Ask for information about previous projects
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    At least it has an ABN but a string of prior names.
     
  4. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Why does it change its name every now and then?
     
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  5. leicachamp

    leicachamp Well-Known Member

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    I would not worry about not having a website. I do 3-4 projects a year and have never needed a website. I know many other developers who dont have web sites as well.
     
  6. leicachamp

    leicachamp Well-Known Member

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    Some of the ones who do have websites are dressed up to make them bigger or better than what they are. Its so cheap to have a glossy website done up.
     
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  7. LoanSharkJR

    LoanSharkJR Well-Known Member

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    That was my feeling too
     
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  8. LoanSharkJR

    LoanSharkJR Well-Known Member

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    The developer was freely forthcoming with his current projects and has encouraged us to view his past completed sites in the near future. He has sent me his and his JV partner's resumes and sent all plans, permits and photos from his past projects. It's a lot to get through. He has divulged all his contacts and resources from his accountant, draftsman, surveyor, solicitor, builders. A comprehensive list.

    I have received a stack of info/plans/permits/past and present projects and the documents and photos seem legit to me. They even provided their resumes! I really don't think they've got anything to hide since viewing all that stuff.
     
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  9. LoanSharkJR

    LoanSharkJR Well-Known Member

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    They have supplied adequate documentation today. I am not so suspicious of them now they have laid (most) of their cards on the table.
     
  10. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Make sure you get legal advice BEFORE signing anything (with any developer). AND make sure your lawyer knows what you would like the outcomes (and timing) to be
     
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  11. LoanSharkJR

    LoanSharkJR Well-Known Member

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    Absolutely. This is brand new territory for me, and I would prefer a solicitor who has had experience working with custom property deals, as opposed to just the local guy whom you may have used for your will. I am going to be relying on their expertise heavily to guide my dad through and the right advice is crucial.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Change of name has NOTHING to do with a company identity or liquidity / licensing. The company name could be ABN 111 222 333 Pty Ltd and its same company. Name is often used for branding and can be changed...Even BHP divisions do this. (eg Onesteel). A company can also own as many business names as it can register and use those names. eg Wesfarmers Ltd owns names for - Coles, Kmart, RedRooster, Bunnings etc...Some of those are also subsidiary companies ie Coles Supermarkets Pty Ltd.

    A continual change of the company that uses a business name or a string of similar names due to financial collapse is a red flag. eg ABC Projects Pty Ltd ...ABC Projects (Malvern) Pty Ltd...ABC Projects (South) Pty Ltd...But if the ACN and ABN remain the same its the one and same company.

    To determine this you can search for all historical info on the key Director and company roles....Dun and Bradstreet can do a fee search for this. Online.
     
    Last edited by a moderator: 19th Dec, 2018
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  14. LoanSharkJR

    LoanSharkJR Well-Known Member

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    UPDATE: 10 months later we are still in consult with Arena Equity. They have provided us with the information necessary to purchase OTP with them. So far, they have shown commitment to the process of preparing our land for their buildings. They have been flexible with time frames and allowed us to take time to consider our options thoroughly before signing documents. It is still early days, but we have had no negative experiences with them thus far.
     
  15. Tools

    Tools Well-Known Member

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    He is a graduate from Troy Harris's 100K club

    Tools
     
  16. LoanSharkJR

    LoanSharkJR Well-Known Member

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    Hi Tools,

    What is your opinion of Troy Harris and his seminars/course? Do you know of Arena because you have attended the 100k club and bumped into him? Is it a good or a bad thing to be a graduate of Troy Harris's 100k club? Cheers!
     
  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    These are absolutely the kind of questions that should be asked of any company you're about to enter a significant contract with - especially a builder/developer.

    However, it is also important to understand the differences between name changes and ABN changes - as @Paul@PFI mentioned. Same ABN = same company. Different ABN = different company. Regardless of how many name changes there have been - if it's the same ABN, the company is the same and it retains all liabilities from previous operations. So in the case of a developer - if there is an issue with a development, they will still be obliged to deal with the matter even if they have changed their name.

    In this particular case - Arena Equity has changed its name several times, but retained the same ABN. I received the following information from the director of the company by way of explanation:

    We first changed name from Arena Property Group to Arena Group Investments, so that the company name aligned more with our business model, which was investing in real estate and giving investors a return. In mid-2017 we wanted to set up a company email address, with future plans for a website, but there was no short or easy-to-type domain name which matched the company name. Based on advice from our accountant we changed it to Arena Equity, so that we could register a domain which matched the company name. It is still the same business, as evidenced by the same ABN over these years​

    I think that is a perfectly reasonable answer and I posted it here for educational purposes to demonstrate how these things sometimes happen.

    (Note that I have not done business with Arena Equity - this isn't an endorsement, I'm just trying to help people understand how these things work).

    To summarise - you should absolutely do your research before engaging a developer. Find out who the directors of the company are, look at the history of the ABN and do a search on companies relating to the directors. You can do searches via ASIC and via external services - some searches do cost but are generally not that expensive, especially when compared to how much the development will cost!

    Your accountant or lawyer can also help with these searches and identifying potentially problematic issues. You should be engaging them to advise you before entering into any contract of this nature!
     
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