- Tripe MMM have defaulted on their payments
- Upon completion, the development is expected to be valued at $155 million
- The builder, ADCO, remains committed to the project
Merricks Capital has announced today that it has placed the Melbourne Place hotel development project into voluntary administration following payment defaults by the developer, Triple MMM Holdings Pty Ltd (Triple MMM).
Upon completion, the project is expected to be valued at $155 million and will consist of a 15-storey, 189-boutique hotel on the Paris end of Melbourne’s CBD.
McGrathNicol Restructuring has appointed Partners Matthew Hutton and Matthew Caddy as the administrators.
“The Administrators are undertaking an urgent assessment of the Melbourne Place project. We will be working constructively with all stakeholders including the builder, ADCO Constructions, to seek to secure the best possible outcome for all parties,” said Mr Hutton.
Currently, the project is in the early stages of both construction and funding, with the basement and early works underway.
Merricks Capital is the senior secured lender of the project, and had made available a $105 million facility, of which around $40 million was drawn.
This forms part of Merrick Capital’s’ $2.1 billion of private credit sector funds under management.
Adrian Redlich, Merricks Capital Executive Chairman & Chief Investment Officer, said, “Melbourne Place sits on a prime site in Melbourne’s east end that is hard to replicate, and we believe it will be one of Melbourne’s leading hotels. Merricks Capital is keen to support it through to completion if the right equity partner is presented by the administrators.
“Merricks Capital will work collaboratively with the construction company ADCO Constructions (ADCO), the administrators and other stakeholders to seek to achieve the best outcome for the project and all stakeholders.”
Adrian Redlich, Merricks Capital
Neil Harding, ADCO Managing Director, said the team remained supportive of the project.
“Construction remains on track for completion in line with project planning, and we will work with all stakeholders to see it to a successful conclusion,” he said.
“The architect has designed a beautiful building that responds well to its urban setting,” Mr Harding said. “For over 50 years ADCO has delivered striking developments in the hotel, hospitality and short-term accommodation sectors, and we look forward to seeing this fabulous project completed.”
The news follows the liquidation of All State Constructions Solutions last week.