A number of private retirement village developers suffered a slow death after the global financial crisis thanks to mezzanine debt provider LM investment management fund, which went into receivership in 2013.
The knock-on effect was at least eight retirement villages funded by LM being sold by receivers.
LM founder Peter Drake, according to ‘The Australian’ at the time, would go down as the third largest bankruptcy in Australian history. All up 12,000 investors across the world lost $750M, most from Canada.
Its major Gold Coast development was Maddison Estate which it said had an end value of $1B. The developer Sunland acquired the first mortgage and control of it 2014 for $24.75M form the mortgagee Suncorp.
Pictured above, Sunland has successfully developed 450 of the 700 building lots on the 105 ha block.
Gold Coast discussion is that land lease community joint venture operator Gemlife, (the Puljich family and Singapore’s Thakral), will buy the remaining 250 lots for a rumoured $30 million.
That will take the gross revenue for Sunland to $150 million, according to the Gold Coast Bulletin.