CBD
It involved legal shootouts, media cannonfire and plenty of hurt feelings, but one of the wild west's most colourful sagas looks close to an end after KordaMentha flogged off Luke Saraceni's Raine Square development in the Perth CBD.
KordaMentha was acting on behalf of the lenders, Bank of Scotland International and BankWest - the latter being awkwardly situated as both financier and anchor tenant of the mixed-use development.
While often spoken of as a $500 million development, the listed property group Charter Hall paid $458 million for the building on Wednesday. BankWest appointed KordaMentha as receivers of Saraceni's development group Westgem in 2011 after it missed a $50 million payment, sparking a bonanza for m'learned friends.
In one case, Saraceni alleged that KordaMentha had not been validly appointed. In another, he claimed $200 million in damages from BankWest's owner, CBA, claiming the bank deliberately tried to seize control of the building. He also challenged the validity of a bid by the corporate watchdog to grill him under oath and sued two KordaMentha partners, Scott Langdon and celebrity accountant Mark Mentha, for defamation. Despite the sale, the western serial looks set to continue in the courts.
While Saraceni lost the validity-of-appointment case and the ASIC case, the claim for damages and the defamation case continue - as does a case in which BankWest alleges misleading and deceptive conduct over $7 million raised from investors.
A new record?
Nigel Austin, the founder of clothing chain Cotton On, has emerged as the buyer of a pricey mansion once owned by former bankrupt John Elliott. Austin slapped a caveat over the property on Friday protecting his rights as purchaser. There is some dispute about how much the rag trader paid former JP Morgan Australia chairman Brian Watson for the lavish estate in exclusive Toorak.
Some sources claim it set a new M-Town record of $25 million, busting through the $24 million mark set by property developer Harry Stamoulis in 2010. But others claim it fetched closer to $21 million, a figure both more plausible and far shy of the $26 million for which agents Kay and Burton had hoped.
On a ginormous block, the Towers Road spread features all the mansion essentials, including a pool, tennis court, four-car garage, gym, walk-in cellar, six bedrooms, seven bathrooms and a partridge in a pear tree.
Big mansions are becoming an Austin trademark: last year he was revealed to be building a vast pile on a $10 million Hamilton Island block of land, next door to the late Beatle George Harrison's holiday house.
Pridham's Swans
Footy frenzy has engulfed the property world, with the 2012 AFL premiers, the Sydney Swans, appointing as chairman long-time fan and director Andrew Pridham.
Pridham, known as Mr Property, and is the chief executive of Moelis & Co, will replace another property director, Richard Colless, when he steps down in February 2014.
And there's more to come, with the Ray White EJ Whitten Legends Game looming next month.
For the 10th year in a row Ray White - the largest property group in Australasia - will sponsor the showdown. It pits recently (and not so recently) retired AFL types against each other in a battle of the states. Last year's line-up included Anthony "Kouta" Koutoufides, Wayne Carey, Matthew Lloyd, Anthony Rocca, 2005 Swans premiership player Tadhg Kennelly, Mal Michael and man of the match Brendan Fevola. Fev's nine-goal haul handed the Vics back-to-back wins in front of a record crowd (for the event) of 26,221 fans.
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Frequently Asked Questions about this Article…
Raine Square in the Perth CBD, a mixed-use development tied up in legal disputes, was sold by receivers KordaMentha to listed property group Charter Hall for about $458 million. KordaMentha was acting for lenders after the developer missed a $50 million payment, and Charter Hall’s purchase brought a high-profile chapter in the project’s saga closer to resolution.
BankWest appointed KordaMentha as receivers of Luke Saraceni’s development group Westgem in 2011 after Westgem missed a $50 million payment. KordaMentha acted on behalf of the lenders, including Bank of Scotland International and BankWest, to manage and ultimately sell the asset.
The Raine Square saga involved multiple legal actions: Luke Saraceni challenged the validity of the receivers’ appointment and has sued for damages and defamation, while BankWest has alleged misleading and deceptive conduct over about $7 million raised from investors. Some cases were lost by Saraceni, but key claims for damages and defamation are still continuing, which highlights lingering legal risk around the project.
Luke Saraceni has alleged that KordaMentha was not validly appointed as receivers, sought about $200 million in damages from BankWest’s owner CBA claiming deliberate attempts to seize the building, and sued two KordaMentha partners for defamation. While he lost some cases, several claims remain ongoing in the courts.
Although Raine Square was often spoken of as a $500 million development, the receivers’ sale to Charter Hall completed at about $458 million. The article notes both figures, indicating the final sale was below the frequently quoted $500 million valuation.
Nigel Austin, founder of clothing chain Cotton On, is reported to be the buyer of an exclusive Toorak mansion with some sources claiming a price around $25 million and others nearer $21 million. The article presents this as an indicator of continued activity at the top end of the residential market, a point everyday property investors may watch for broader sentiment.
Andrew Pridham, a long-time fan and director known as 'Mr Property' and chief executive of Moelis & Co, was appointed chairman of the Sydney Swans. The article highlights his move from a property background into a high-profile sporting leadership role.
The article notes that Ray White, the largest property group in Australasia, will sponsor the EJ Whitten Legends Game for the 10th consecutive year. Such high-profile sponsorships reflect the property sector’s public engagement and marketing efforts, which can shape brand visibility in the industry.
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