Steller boss promises to ‘honour contracts’ for building projects

The boss of failed development company Steller has broken his silence on the future of his various operations and hundreds of building projects left in limbo after the group folded.

Simon Pitard (right) and former joint venture partner Julian Gerner were undertaking the $80 million refurbishment of the Continental Hotel in Sorrento but the landmark building was put up for sale this month.

Failed development group Steller has pledged to forge ahead with about 300 units and townhouses that were under construction when the company folded in early July.

Co-director Simon Pitard has told the Leader they would wind up the “service-based businesses” but building work would continue until contracts were honoured.

When Steller went into receivership last month, it plunged the future of hundreds of apartment buildings and redevelopment projects into doubt and left 76 construction workers without jobs.

“The construction entities will not be affected by (the insolvency process), thereby allowing us to continue to deliver the 300-odd apartments and townhouses that are currently under construction across the portfolio,” Mr Pitard said.

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“We have approximately 200 contracts of sale with current purchasers still to be delivered and we intend to honour those contracts.

“This means any purchaser with a Steller contract of sale for an apartment or home that is currently under construction will be able to expect delivery of that home within the contracted period.”

Mr Pitard said the company would no longer generate products or services which would be the “final step in the restructuring and unwinding process” for the embattled group.

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“Various other entities — with the exclusion of all construction entities — will be restructured in a more informal process over the coming months. The objective of that process will be to achieve a better outcome for those companies,” he said.

McGrathNicol was appointed the receivers of Melbourne-based Development Steller Pty Ltd and a number of its related entities and assets.

McGrathNicol partner Keith Crawford said at the time the receivers were undertaking an urgent financial assessment of the assets under their control.

“We’ll be working constructively with all stakeholders, including financiers of individual properties, to secure the best possible outcome for all parties,” Mr Crawford said.