Melbourne-based property developer Steller has fallen into receivership and will undergo an “urgent” assessment of the company’s land and property assets.
McGrathNicol Restructuring on Tuesday announced it had been appointed receivers of the beleaguered property group, which was founded in 2006 by Nicholas Smedley and Simon Pitard.
McGrathNicol’s appointment was made by credit fund manager OCP Asia, which provided funding to Stellar.
“The receivers are undertaking an urgent financial assessment of the assets under their control,” McGrathNicol partner Keith Crawford said in a statement.
“We’ll be working constructively with all stakeholders, including financiers of individual properties, to secure the best possible outcome for all parties.”
At its peak, Steller had a reported $4 billion-plus worth of residential and commercial projects in the pipeline and a number of high-profile acquisitions across Melbourne.
But the company in May stopped work on the $80 million Continental Hotel project in Sorrento and began selling off assets and firing workers.
McGrathNicol said OCP Asia intends to support the assets over which receivers have control during the receivership process, “including via the provision of additional funding to ensure the assets can be maintained while options for recapitalisation, development and/or disposal are explored”.