CVS Lane calls in receivers for Tallis Group’s Akin Residences Brisbane after Descon fallout

Receivers have been called in to a $180m luxury tower development after a bitter fallout between the developer and builder. Find out why

Receivers have been called in to a $180m luxury tower development after a bitter fallout between the developer and builder.

Tallis Property Group’s partly-built 30-storey Akin, near Brisbane’s Southbank, was due for completion by embattled builder Descon Group Australia early next year.

Instead, the contract has been terminated and both parties have ended up in court, leaving more than 150 apartment buyers in limbo.

Artist impressions of Tallis Property Group's Akin Residences at South Brisbane, which was under construction by Descon Group Australia.

Receivers John Park and Ross Blakeley of FTI Consulting were appointed to 35 Merivale, the Tallis company that was developing Akin, on December 7.

Documents confirming the receivership were lodged with ASIC on Tuesday, revealing lender CVS Lane holds a mortgage over the development site at 35-39 Merivale Street.

The Gold Coast Bulletin has contacted the receivers and lender for comment.

The same day receivers were appointed, managing director Feng “Angus” Gao said Tallis Property Group would be “delivering Akin Residences under a developer-builder model to control the quality, staging and delivery of this exceptional project”.

The Tallis company in receivership won a court case earlier this week, allowing it to access $4.3m in insurance bonds provided by Descon as security under the contract.

Artist impressions of Tallis Property Group's Akin Residences at South Brisbane, which was under construction by Descon Group Australia.

Descon had sought to prevent the developer from cashing the “unconditional and irrevocable insurance bonds from Vero Insurance”, documents lodged in the case show.

Mr Gao said his company “took the necessary steps to safeguard our development, and the investment of our purchasers, when it became apparent that the delivery issues of the appointed builder, Descon, posed an unacceptable risk”.

Descon has been plagued by financial troubles, with four of its companies in liquidation and a wind-up application under way for the parent group.

The company has dropped out of billions of dollars in developments in Brisbane and on the Gold Coast, sparking multiple legal battles.