Receivers vex Becton privatisation plan by:Sarah...

Receivers vex Becton privatisation plan

by:Sarah Danckert
From:The Australian
May 02, 201312:00AM

http://www.theaustralian.com.au/business/property/receivers-vex-becton-privatisation-plan/story-fn9656lz-1226633405136


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PLANS to privatise failed developer Becton appear to have been scotched, with chief executive Matthew Chun expected to leave the company after receivers were appointed to two of its three projects, including a $733 million social housing project.

The company has also sacked most of Becton's staff, with only one or two working from its East Melbourne offices, say former staff and industry sources.

Becton's headstock was placed in receivership in February by the company's main bankers, Goldman Sachs. However, the entities developing and managing its projects were not placed in receivership and receiver KordaMentha said it would complete the developments.

Projects recently placed in receivership include Becton's Newleaf social housing project in Bonnyrigg in Sydney's west, a private-public partnership with the NSW government and Becton's half-finished retirement village in Wahroonga in Sydney's north.

Becton's financier on Newleaf, Westpac, has appointed PPB as receivers. Separately, Suncorp has appointed receivers BDO to sell the land underpinning Becton's retirement Woniora village development. The appointments sparked speculation Goldman Sachs will no longer look to privatise the company, which now controls only its Waterloo apartment project in inner-city Sydney. Mr Chun declined to comment.

Newleaf is a PPP between Housing NSW and a consortium of several parties including Becton, Westpac, Hastings Fund Management, Spotless and St George Housing. The partners are now looking for a new developer-construction company to complete the remaining 15 stages of the 18-stage project. In January, Westpac was owed $32m on a construction facility for stage three of the project.

Separately, Suncorp has foreclosed on a loan of about $7m to Becton , held over its $44m Wahroonga site. The property will be sold to a new retirement village developer.
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