15/02/2011 - 06:39

Saraceni lodges writ to oust receivers

15/02/2011 - 06:39

Bookmark

Save articles for future reference.

Embattled property developer Luke Saraceni has filed a writ in the Supreme Court to have KordaMentha removed as receivers for troubled $500 million office development Raine Square.

Saraceni lodges writ to oust receivers

Embattled property developer Luke Saraceni has filed a writ in the Supreme Court to have KordaMentha removed as receivers for troubled $500 million office development Raine Square.

The writ questions the validity of the appointment of KordaMentha as receivers and managers of Westgem Investments by the project financiers, Bankwest and Bank of Scotland International.

According to the writ, under the original financing arrangements for the project, which were entered into in April 2008, there were no Saracen Properties assets properly identified as security for Raine Square.

Mr Saraceni said the mortgage agreements entered into with the project financiers were not effective as charges over any Saracen Properties assets.

"It clearly doesn't operate as a charge, which includes the $200 million claim against Salta, the cash that's in the bank and lots of other property that we own, the plans and specifications that Westgem owns and things like that.

"Even in the best case scenario, if it operates at all, it can only operate against the land and buildings for Raine Square and not the rest of the assets."

Raine Square's financiers appointed KordaMentha as receivers to the $500 million tower in January, after Westgem missed a $50 million debt repayment on December 31.

In January, Bankwest also appointed receivers from Ferrier Hodgson to Saraceni-associated entities Seaport, which owns the Bayside City Plaza shopping centre in Warrnambool; Newport Securities, which holds a 40-hectare property near Margaret River; and Mayport Nominees, which holds strata retail units in Spearwood.

Receivers from KordaMentha also seized Saracen's mixed use development at 500 Hay Street in Subiaco on Thursday, after the sale of neighbouring 502 Hay Street was settled for $67 million.

Also, on Friday KordaMentha lodged an interlocutory injunction at the Supreme Court for the return of $1.3 million that was transferred out of Westgem's accounts a day before receivers were appointed.

That matter was due to be heard in court tomorrow.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options