The developer of a planned 257 apartment complex in the Adelaide CBD has entered voluntary administration.
Runtong Investment and Development Pty Ltd, which is behind the $117 million Datong U2 apartment complex in Waymouth Street, has appointed Nick Cooper and Dominic Cantone of Worrells Solvency and Forensic Accountants as voluntary administrators.
Mr Cooper, the Adelaide Partner of Worrells, said “work on the planned 27-storey project had stopped last year when construction firm Built Environs walked off the site over an alleged lack of payments”.
Scaffolding and the main crane have been removed and no work has taken place on site since November.
Mr Cooper said the first meeting of creditors has been called for 15 March 2018 with directors expected to propose a Deed of Company Arrangement (DOCA) to offer a return to the company’s creditors.
He said deposits received for almost 200 of the apartments were not expected to be effected as they were held in trust.
Work on the apartment complex started in March last year, with only a small percentage of the building completed. When work on site stopped, only 5 storeys of the planned 27-storey building had been constructed. The tower was due to be completed by 2019.