Creditors hope to recoup losses in Braeside selloff

Nearly four years after the collapse of Gold Coast investment group City Pacific, creditors are still hoping to recoup some of their losses with the staged selloff of an industrial estate in Melbourne's south-east.

Nearly four years after the collapse of Gold Coast investment group City Pacific, creditors are still hoping to recoup some of their losses with the staged selloff of an industrial estate in Melbourne's south-east.

The Braeside property is owned by Lake Views Estates - a joint venture between City Pacific vehicle CP1 and local company Melbourne Property Developments - which collapsed in mid-2009 with debts of more than $59 million.

Receivers Hall Chadwick are putting four allotments in the Canterbury Road industrial estate up for auction with the expectation that they could fetch more than $2 million collectively.

The undeveloped properties range from 998 to 2811 square metres with asking prices of about $249,000 to $843,000 each.

Conjunctional agents Savills and CBRE estimate they will fetch between $250 to $300 per sq m.

"Obviously being under advice from the receivers, our instructions are very clear. It goes without saying that this is a great opportunity for potential purchasers," said Chris Telley of Savills.

CBRE's James Jorgensen said the properties would appeal to owner-occupiers and investors due to their close proximity to Peninsula Link and EastLink. The auction is on May 22.

Land title records show Lake Views Estates still holds more than 20 other industrial properties in the area. Last year, an allotment sold for about $308 per sq m.

Hall Chadwick did not respond to a request for comment. It is unknown when the other allotments will be put to market or how much has been recouped for creditors from other sales in the precinct.

cvedelago@theage.com.au Twitter: @chrisvedelago

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