Receivers have been appointed to the Top Ryde Shopping Centre in Sydney six months after rich list member John Beville unveiled renovations to the centre at a ceremony attended by Prime Minister Julia Gillard.
A lending syndicate including National Australian Bank, Royal Bank of Scotland, ING Real Estate Finance, Suncorp and ANZ called in receivers from insolvency firm McGrathNicol after attempts to sell the property failed.
It is believed financiers are owned between $600-$700 million.
Beville, who was listed on BRW’s Rich 200 List with a fortune of $375 million in May 2010, has placed his private company Bellevista in the hands of administrators from BRI Ferrier.
Beville’s other major asset, the Harbourside Shopping Centre at Darling Harbour in Sydney, has not been affected by the other collapses.
Beville is reported to have invested more than $800 million in the redevelopment of the Top Ryde centre but as costs of the new works blew out he was forced to increase his borrowings.
According to BRW his wealth fell $34 million due to falling shopping centre values.
McGrathNicol receiver Joseph Hayes, who has installed new management at the Top Ryde centre, told the Australian Financial Review he plans to continue to trade rather than pursuing a formal sale campaign at this stage.
The difficult retail environment is likely to have contributed to the collapse of the Top Ryde centre but an asset of its quality is likely to attract a lot of interest from cashed-up property trusts searching for a bargain.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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