QLD – 6 rental villages operator Oxford Crest collapses

Launched in 2000 and now with 374 rental units owned by individual private investors, rental village operator Oxford Crest has had administrators appointed to its controlling entity Lapwing Developments by Secured Mortgage Management – who is also in liquidation. The Oxford Crest model was to provide mainly one bed rental accommodation on a 12 month lease costing up to 85% of the single pension. Meals and linen services were included. Under QLD laws all residents’ occupancy is protected. The Courier Mail reports the ATO is seeking $3.21 million back to 2007. Also reported is Lapwing director David Delaney resigning in 2009 when he was declared bankrupt with debts of $37 million, including $14 million to Secured Mortgage Management. Last year another director, Graham Berry also was declared bankrupt, owing $2.6 million to Secured Mortgage Management. Rental villages based on a percentage of the pension have been a graveyard for developers. ING is perhaps the first to make a go of it – at last – see story above.