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Major NSW-based property developer Ralan Group has fallen into administration, leaving key builds in the lurch alongside its creditors.
Administrators Grant Thorton were appointed on Wednesday to determine what is to happen with the collapsed company.
The Ralan group specialises in the development and management of commercial and residential properties in Sydney and the Gold Coast.
Its major builds include the Ruby Collection on the Gold Coast, described as offering "sophisticated indulgence and cutting-edge designed one, two and three-bedroom apartments, villas and sky suites".
Gold Coast Mayor Tom Tate and William O'Dwyer at Ruby Collection's sod turning in November 2015.
The administrators have said that the company has a development pipeline of over 3,000 residential units which are in the construction or pre-sale stage, as well as operating accommodation assets comprising over 600 rooms.
Grant Thorton are currently assessing the finances of the group and will be holding a first meeting of creditors soon.
The total value of creditors is still to be confirmed but initial indications are around $500 million owed across the group according to Grant Thorton.
"In terms of the operating business within the group, it is as far as possible, business as usual," says national managing partner at Grant Thorton Said Jahani.
"We are working closely with key stakeholders to identify and preserve value for creditors."
While it is still early days, with Grant Thorton urging creditors to remain patient as they asses the company's finances, the administrators have said that there is a "significant deficiency" owed to unsecured creditors and purchasers.
Ralan was in the process of a key build in Arnchliffe called The Orchid. It is unknown at this stage whether Grant Thorton will continue with that build or whether the land will be sold to other developers who may elect to complete the build.
"We ask for your patience, whilst we undertake our investigations and efforts to look at all options for the benefits of our customers," says Grant Thorton.
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Business News Australia
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