Datong general manager Ping Huang flies out, leaving U2 on Waymouth developer rudderless

SIX WEEKS after the chairman of a troubled Adelaide developer flew to China – allegedly leaving millions of dollars in debt in his wake – his number two has followed suit.

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SIX WEEKS after the chairman of a troubled Adelaide developer flew to China – allegedly leaving millions of dollars in debt in his wake – his number two has followed suit.

Ping Huang, general manager at Datong Australia, boarded a flight to Kunming in China’s southern Yunnan province yesterday to effectively leave the developer behind the faltering 257-apartment U2 block on Waymouth St rudderless.

Construction outfit Built Environs terminated its contract with Datong last week over unpaid bills understood to amount to $3.5 million and has now moved off the Waymouth site.

Mr Huang is set to return on Monday, January 15, and will face a barrage of uncertainty set to test Adelaide’s booming apartment market.

A crane is dimantled on Waymouth St. Picture: Mike Burton

An artistic impression of U2 on Waymouth. Picture: Supplied

However chairman Jin Liang is adamant his company’s cash flow challenges can be overcome.

“Chinese banks are delaying and even blocking some foreign exchange transactions under a decision by the central government to limit capital leaving the country,” he said in a statement.

“I am currently in China working with the Chinese government trying to resolve this issue. The funds from China will thus enable construction on U2 to resume. I hope to be able to provide a positive report in the very near future.”

Rumours Datong faces administration are unfounded, said Mr Liang who claimed he would re-engage Built Environs to resume construction once finance became available.

Daryl Young, managing director at Built Environs, confirmed he was happy to re-engage should Datong resolve its financial difficulties. Mr Liang offered his “personal apologies” to U2 buyers.

“I am doing everything I can to rectify the situation so that construction may resume. Buyers can rest assured that their deposits are held in different sales agencies and lawyer trusts which are administered by independent third parties.,” he said.

An artistic impression of the view from U2 on Waymouth. Picture: Supplied

Meanwhile, Mr Liang confirmed Datong had entered into a financial borrowing arrangement with high-interest chargers CEG Direct Securities and La Trobe Financial in relation to apartments it owns at Aria on Gouger St.

“We would welcome the sale of these apartments as it would aid our ability to service our debts,” he said.

Buyers who purchased apartments at Aria have had the title deeds transferred into their names “except for a few who have made special business arrangements with the company at the time of purchase,” he said.

Datong, which built Aria in 2015, is yet to lease its commercial ground floor space there.

Mr Liang, a known visitor to Adelaide Casino, confirmed “no Datong funds have been used for anything other than Datong business”.

Equally Datong has not assisted non-Australian residents looking to buy an apartment here with securing s457 or other visas, he said.

CFMEU secretary Aaron Cartledge said the union was concerned over the financial impact on Built Environs and its subcontractors. The CFMEU claims the collapse of builder Tagara was in part due to funds owed by Datong.

Building began at U2 in March with completion of the 27-storey tower due in 2019.