Property developers Steller abandon Moorabbin warehouse

Days after announcing it was winding up operations, one of Melbourne’s biggest developers has abandoned its Moorabbin manufacturing warehouse, despite owing hundreds of thousands in rent.

Development Company Steller has dissolved its partnership and abandoned its manufacturing warehouse in Moorabbin. Picture: Penny Stephens

A large development company on the brink of closure has abandoned its manufacturing warehouse in Moorabbin and owes hundreds of thousands in unpaid rent.

Steller last month decided to sell off its assets and wind down the company, which previously specialised in mid to large-scale apartment complexes in Melbourne’s southeast and had $4 billion of works in the pipeline last year.

Last week it assured property owners the company had not walked away from any projects, and all pre-sale and under-construction apartments would go ahead or be sold to other developers.

But Tsimos Commercial Real Estate managing director Steven Tsimos — who managed Steller’s Keys Rd warehouse, said they had “disappeared” without warning a month ago and had not paid rent since.

Mr Tsimon said Steller’s 18-month lease, which kicked off in January after a six-month rent free period, totalled $240,000 a year and ran until July next year.
“There were manufacturing steel frames for apartment buildings and pre-fab bathrooms and were in there operating, until they just disappeared,” Mr Tsimos said.

“We’ve issued them notices, written to the directors (and) issued default notices, but the silence is deafening.”

Development Company Steller owes hundreds of thousands in rent after abandoning its manufacturing warehouse in Moorabbin. Picture: Penny Stephens

The agent has since taken back possession of the warehouse but Mr Tsimos said Steller still owed hundreds of thousands in rent and outgoing costs.

“We usually try and work through issues when people are having a tough time but in this instance we’ve had zero communication and they’ve just gone and left the place in a mess with steel and steel work lying around,” Mr Tsimos said.

“It’s particularly strange, especially for a company that size.”

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Steller director Simon Pitard, who has ignored Leader’s requests for comment, was a guarantor on the lease along with another unknown party.

The owner declined to comment.

Melinda Cleland said she had also been struggling to get answers regarding building defects in her Steller-built apartment.

“I am having trouble reaching them in regards to defects in the building — ignorance is bliss,” she said.

“So yes, I have concerns as to how this entity will honour their liability under the act.”

Steller has already sold three development sites. The company will also sell off the former Greyhound Hotel in St Kilda and its 1543-square-metre Wells St site at South Melbourne, which has an approved permit for a 20-storey development.

The sales come after directors Simon Pitard and Nicholas Smedley dissolved their partnership last month.

John Hurst, acting for Steller co-founder Nicholas Smedley, said he was unable to comment on alleged defects as Steller’s construction company was owned by Mr Pitard.

“Any projects underway will be completed, he said.