Condev founders Tracy Marais and Steve Marais sell stake in Homecorp’s Capital Court development at Varsity Lakes
The former bosses of collapsed construction firm Condev have quietly make a big sale in a $200m apartment development.
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The former bosses of collapsed construction firm Condev have quietly sold their share of a $200m development at Varsity Lakes.
The first stage of Homecorp’s Capital Court rent-to-build project at Varsity Lakes is set for completion early next year, with the site eventually planned to house 446 rental apartments.
Condev was builder and development partner in the project before the company collapsed in March, leaving Homecorp to take over construction.
Until this week a company that owns just under a third of the Capital Court development was directed and held by Condev co-founder Tracy Marais.
Documents lodged with ASIC on Wednesday reveal it was signed over to Homecorp boss Ron Bakir on Monday.
The under-construction 446-unit development, which has US asset manager Morgan Stanley as a funding partner, is now fully owned by Mr Bakir’s companies.
Developer Homecorp took on construction of the four-tower build-to-rent project after Condev collapsed in March with debts topping $56m.
Mr Bakir said the 258-apartment first stage of Capital Court was progressing as planned, with the first tenants likely to move in next year.
“The Marais’ had around a 27 per cent stake and we bought them out, so now we’ve got 100 per cent stake,” he said.
“Basically, we wanted to get this project finished.
“Construction is on track, we’ll be finished hopefully in the first quarter (of next year).
“Considering the market, our team has done exceptionally well.”
Financier Morgan Stanley said its involvement in the project remained “consistent with its lending arrangements”.
ASIC documents show Mr Bakir’s company RV Aust bought the sole share in the Marais company, named Construction Recovery, for $238,030.
Ms Marais took on the directorships and shareholding of the company from husband and sole Condev director Steve Marais on May 20. Mr Marais was declared bankrupt on July 19.
The ownership change comes as liquidators continue to pick through the collapse of Condev, which flowed onto development projects across the nation.
Owners of the sold-out $140m Alegria tower at Palm Beach were forced to dump their plans and return buyer deposits after suffering a multimillion-dollar cost blowout.
After a new builder was appointed to complete the job, the Bulletin understands costs soared by as much as $10m, with the bank subsequently withdrawing finance.
Condev’s liquidators found the company was haemorrhaging up to $1.5m a month in the 10 months before its collapse.
Homecorp’s Varsity towers are earmarked for a 1.3ha site, made up of land bought by the Sunland Group for $3.85 million in 2013 and later enlarged by snaring land earmarked for a cul-de-sac, Capital Court, from the city council.
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