Liquidators sell off properties -formerly owned by failed Gold Coast charity FSG - for millions of dollars

Liquidators for FSG have sold off millions of dollars worth of property formerly owned by the failed charity.

LIQUIDATORS for FSG have sold off millions of dollars worth of property formerly owned by the failed charity.

The two properties comprise 35 Salmon St, Southport, which sold at auction on Saturday for $602,000 and 161 Kriedeman Rd, Upper Coomera, FSG’s former nursery and community garden, which sold for $1.101 million.

FSG announced it was going into voluntary administration in June and was soon after put into liquidation owing creditors $25 million.

FTI Consulting, which is handling the liquidation of the charity’s assets, recently engaged Savills to market a seven-property portfolio, which included 35 Salmon St.

The house at 35 Salmon St, Southport, formerly owned by failed charity FSG, has sold for $602,000.

Colliers International’s Peter Uebergang, who marketed 161 Kriedeman Rd, said the property was bought by local nursery operators.

He said the sale of the 4.268ha block came with a water allocation from Wongawallan Creek, which, he said, is a “significant advantage”.

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Company records show Len & Olive Pty Ltd, linked to Spectrum Plants nursery owner Wesley Trevor, is the buyer of the Kriedeman Rd property.

FSG paid $1.32 million for the property in 2011.

Savills’ James Stevenson, who took 35 Salmon St to auction, said the interstate buyer is looking to build four townhouses on the 728sq m property, acquired by FSG for $370,000 in 2006.

The 16-18 and 20-22 Railway St properties of failed charity FSG are being sold by liquidators.

The property includes a three-bedroom house, which is a short distance from a light rail station.

“The buyer really liked the amenity and proximity to the light rail stop,” Mr Stevenson said.

“This is a really good area to develop townhouses.”

The other FSG properties from the Savills portfolio being sold are 16-18 and 20-22 Railway St and 4 Bambarra St in Southport; 54 Silvereye Circuit, Gilston; 3 Jowett St, Coomera and 87 Moon St, Ballina.

They are being marketed in an expressions-of-interest campaign closing on March 28.

FSG collectively spent $6.92 million between 2006 and 2011 acquiring the seven properties, including Salmon St.

The 20-22 Railway St property served as FSG’s head office with a cafe on the ground floor, which employed clients. The adjacent 16-18 Railway St building was used as an art gallery and for training rooms and additional office space.

Both buildings combined offer 1583sq m of land and a net lettable area of 1755sq m. They are being sold with vacant possession.

Mr Stevenson said the two Railway St buildings were drawing interest from investors, owner-occupiers and developers.

He said the substantial landholding and location in Southport’s Priority Development Area made it an attractive proposition for redevelopment.

Mr Stevenson said the 4 Bambarra St property was a state-of-the-art residential care facility developed by FSG, which spent $1.5 million on the fit-out.

Features include four bedrooms, and voice-activated doors and curtains to assist residents.

“We have had a significant level of inquiry from aged-care providers looking to purchase the property for the accommodation,” he said.

The property is currently occupied by disability service provider Choice, Passion, Life (CPL), which took over FSG’s disability clients after it went into administration.

FSG, which blamed the NDIS and a lack of support from the State Government for its collapse after 30 years, recorded losses of $1 million, $2.29 million and $5.225 million in the 2015-2017 financial years.