Major Melbourne developer Steller responds to rumours as it sells off assets, fires workers
Doubt hangs over the future of dozens of apartment complexes under construction across Melbourne, with their developer selling off assets and firing 76 construction workers.
Inner South
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Dozens of apartment buildings and redevelopment projects in Melbourne are in limbo after a major development company started selling off its assets.
Steller — which specialises in mid and large-scale residential and commercial apartment complexes in Melbourne’s southeast and had $4 billion worth of projects in the pipeline last year — has fired 76 staff from its construction team.
Conveyancing and building works on at least one site have also been put on hold.
Three of its development sites have already been sold off to new buyers, including one at 520 Tooronga Rd in Hawthorn East.
The private group will also sell off the former Greyhound Hotel in St Kilda, which it snapped up last year, and has appointed Savills to sell its 1543-square-metre site at 200-204 Wells St, South Melbourne, which has an approved permit for a 20-storey development.
A source told the Leader that people in the industry were scrambling to find other developers to take over dozens of unfinished projects across Glen Eira, Bayside, Kingston and beyond — and he said buyers had been left hanging.
>> Have you been affected by Steller’s situation? Email emma.schenk@news.com.au
Bentleigh resident Declan Martin said it was “very unfortunate property buyers had been left in the lurch”.
Mr Martin said he had seen two developments near his home stall after another property developer went bust earlier this year.
“The property market has been slowing and I think we have an over-supply near Bentleigh station,” Mr Martin said.
“I hope this isn’t a red flag for what’s to come in the property market.”
But John Hurst, acting for Steller co-founder Nicholas Smedley, said the company had not walked away from any projects, and all of its portfolio would be sold over time, when projects had been completed.
Mr Hurst also assured people who had purchased an apartment on pre-sale that the works would go ahead in time.
“The development sites will continue to be developed and it will be a staged process,” Mr Hurst said.
“The partners (Mr Smedley and Simon Pitard) have decided to dissolve the partnership … and sell sites and projects as they get offers that justify the value.”
Savills Australia CBD and Metropolitan Sales director Julian Heatherich confirmed his property group had taken over some of the sites.
“Some of these sites have been earmarked for sale and they will presumably sell to groups or a group, and the developments will proceed,” Mr Heatherich said.
Steller’s website states the group had more than 50 projects on the go, with many under construction, including the 19-building Hampton Green project in Hampton St.
Other listings include an approved eight-storey complex at Brighton Rd, St Kilda and an 11-storey complex at Chesterville Rd, Cheltenham.
There are many others in Carnegie, Glen Huntly, Highett, McKinnon, Frankston, Bentleigh, Moorabbin and Hawthorn East.
Stellar co-founder Simon Pitard is also a joint partner in the huge $80 million refurbishment of Sorrento’s Conti Hotel after signing a deal in 2017 to “bring finance and construction skills to the table”.
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It’s believed Mr Pitard will continue to complete this project, but he did not return calls.
The ASIC business register website states Stellar Pty Ltd’s “record was extracted” as of today, and a Change to Company Details and Member Name application was lodged yesterday.
The private company was formed in 2013 and had recently expanded into commercial and aged care developments.
It was also recently granted a permit for a co-located aged care and retirement living site at Graham Rd, Highett.
ASIC and the ACCC have been contacted for comment.
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