PARAGON Apartments is still causing headaches for millionaire property developer Norm Carey and his development company, Westpoint.
Three groups of investors linked to Melbourne-based Latrobe Capital and Mortgage Corporation Limited are suing Westpoint and Mr Carey for more than $1.6 million.
Four separate writs were lodged in February this year claiming that the investment groups were owed more than $1.6 million from loans made to Westpoint in 2001.
It is understood that Mr Carey has re-financed the loans for the four residential apartments in the Paragon Apartments development and new loans have been appointed, with settlement scheduled for completion in the next month.
WA Business News understands the investment groups’ action surprised Westpoint, given that the loans had been re-financed. Westpoint expects the cases to be settled out of court.
Latrobe Capital and Mortgage Corporation Limited and legal representatives of the investments groups, CBA Legal, declined to comment.
The $90 million Paragon Apartments development was launched in 1999, however, as of October last year, only 60 per cent of the development had been sold.
Launched at the beginning of the rise of the inner-city living trend in Perth, the development was constructed without any on-site car parking.
According to industry sources, the development’s lack of car parking and small living space specifications proved unpopular in the local apartment market.
Westpoint is understood to be pushing on with its plans for a $250 million, 960-apartment development at the old Emu Brewery site. Westpoint has lodged an appeal with the Town Planning Appeal Tribunal for the City of Perth’s approval and over the conditions imposed by the WA Planning Commission in a ruling last year.
