- The developer is behind many high-profile projects including the redevelopment of the Nylex site in Cremorne
- The company was founded 20 years ago by Joe Russo
- Has delivered over 3,000 apartments since inception
Melbourne-based developer Caydon Property Group has gone into liquidation.
The developer, who is behind many high-profile projects including the redevelopment of the Nylex site in Cremorne in inner-east Melbourne, has cited rising interest rates, Covid-related lockdowns and the recent sales slump as the main reasons behind placing itself under guardianship.
OCP Asia, a non-bank lender, has security over the developers assets, and have appointed McGrathNicol as the bankruptcy trustees.
The company was founded 20 years ago by Joe Russo, and has two projects still under construction – HOME in Aphington and Due North in Preston. The developer said these will be completed and settled despite the bankruptcy.
“Since Caydon’s inception, we have delivered some fantastic projects, including over 3,000 apartments, hotels and offices, which I am extremely proud of,” said Mr Russo in a statement.
“Unfortunately, Caydon has faced one difficult market situation after another in recent years. The latest and really confrontational challenge we’ve faced is the pricing drivers impacting the Australian real estate and construction industry.
Joe Russo, Caydon CEO and founder
“The significant disruption to our business as a result of two years of Covid-19 lockdowns in Melbourne has created uncertainty for business and a serious impact on sales.”
“It has been extremely difficult to make this decision, but to ensure the best possible outcome for all of our partners and customers, we have had to commence the liquidation of part of our Australian business.”