Receiver shock:$90m Coolalinga Central to be sold off

The $90 million Coolalinga Central shopping centre owned and built by Gwelo Investments has been put on the market by receivers.

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The $90 million Coolalinga Central shopping centre owned and built by Gwelo Investments has been put on the market by receivers.

The shopping centre, which has Kmart and Coles as anchor tenants, is in the hands of receivers Deloitte which is hoping to secure at least $80m from the sale.

Coolalinga Central was originally put up for sale by Gwelo Investments in June 2019 offering potential new owners a $7 million income stream.

Gwelo Developments have put Coolalinga Central on the market Picture: Supplied

Deloitte is acting on behalf of Victorian non-bank lender Wingate, which is understood to have made the appointment in relation to the Coolalinga Central in January this year.

A report lodged with ASIC in the same month said Gwelo was owed rent from a number of tenants.

When Coolalinga Central opened in 2017 about 85 per cent of the shopping centre had been leased to businesses and the NT News reported the site cost $400 million to develop. The cost included the civil works and the development of the residential estate behind the shopping centre.

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The shopping complex is located 30 kilometres southeast of the Darwin CBD and the building occupies 20,034 sqm with undercover parking.

Apart from the anchor tenants the complex has a Chemist Warehouse, Liquorland, Mad Harrys, bar and grill, a range of health and beauty shops, cafes and fast food outlets among the list of 37 specialty stores.

Gwelo Investments has a long history in Darwin building hotels, office blocks and major residential developments such as the one at Coolalinga.

A report lodged with ASIC in January noted Gwelo was owed rent from a number of tenants.

It is not the first time the Darwin construction giant has hit financial trouble.

In 2015 the company was heavily in debt after delays on major projects and dozens of subcontractors were left bearing the company’s debt burden.

Creditors were collectively owed more than $1.2 million, some of whom were forced to lay off dozens of staff and remortgage homes.

Gwelo was also responsible for the development that spruced up the old Woolworths site in Knuckey Street.