A Coles and Kmart-anchored mall in Coolalinga on the outskirts of Darwin has been listed for sale by receivers from Deloitte acting on behalf of prominent Melbourne non-bank lender Wingate.
It is understood price expectations for Coolalinga Central, developed and owned by locally-based Gwelo Investments, are around $80 million.
Its the first major retail property to be sold by receivers since the pandemic. A report lodged with ASIC in January noted Gwelo was owed rent from a number of tenants.
The 20,034-square-metre mall at 425 Sturt Highway includes five mini majors, 37 specialty stores and eight highway pad sites alongside the two strongly performing anchor tenants, both of whom are paying turnover rent.
The fully leased centre brings in annual net income of $6.85 million.
In 2019 Gwelo put Coolalinga Central up for sale with a $90 million asking price, but the mall failed to sell.
Gwelo Investments was contacted for comment and referred to group lawyer Popi Papazoglou. She did not return a phone call.
It is the second time in the space of a couple of years that Wingate has been forced to call in receivers over an asset for which it has provided mortgage finance.
The Collins Street lender was the principle financier of Sydney-based developer Ralan, which collapsed in 2019 owing unsecured creditors $230 million. Wingate has already appointed Deloitte as receivers of a number of Ralan assets, including Sydney apartment development the Orchid.
A spokeswoman for Wingate said, “Wingate, as first mortgagee, appointed Deloitte to act as receivers in relation to the Coolalinga Central shopping centre in January 2021.”
Title searches shows Wingate provided senior and mezzanine loans to Gwelo Investments in September 2018. Coolalinga Central was completed in 2017.
Jacob Swan, Sam Hatcher and Nick Willis from JLL have been appointed by Deloitte to sell the Darwin mall. The agents declined to comment.
A report on company activities and property lodged with ASIC in February showed Gwelo owed creditors over $1 million, including over $430,000 to ASX-listed finance company Thorn Group.
The report also notes that money owed to Gwelo comprises unpaid rent, though the amount was not disclosed.
Led by Even Lynne, Gwelo Investments is one of Darwin’s best known development and building companies with a history dating back to 1975, when it was involved in the rebuilding the city following Cyclone Tracy.
Gwelo has completed commercial office towers, hotels and residential projects in and around Darwin. However, it has also come under financial pressure.
A June 2015 article in the Northern Territory News reported Gwello owed $1.2 million to subcontractors following delays on major projects.
The paper reported that the final stage of the Coolalinga Village had been delayed by 12 months. At the time the company vowed to have paid every single creditor by August of the that year.
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