‘Surprised and concerned’: Iwan Sunito in dark over Crown Group’s liquidation

Iwan Sunito has issued a scathing statement after his business partner of more than 25 years, Paul Sathio, attempted to liquidate their co-owned Crown Group.

Veteran property developer Iwan Sunito says he was surprised and concerned that his business partner of more than a quarter of a century, Paul Sathio, had attempted to liquidate their co-owned development company Crown Group, which has a $5bn pipeline of projects.

In a scathing statement over the impending business break up, Mr Sunito said he was saddened by the drastic application to the court made by Mr Sathio, which had been made without any warning.

“I am surprised and concerned that such a drastic application could be made to the court by my business partner of 25-plus years, Paul Sathio, without the courtesy of forewarning me or my legal team.

“He has chosen a path to attempt to liquidate Crown Group rather than accept my offer of $45m plus for the acquisition of his share in the company,” Mr Sunito said.

“This offer is significantly higher than what’s on the table, three times higher,” he claimed in a statement to The Australian.

Mr Sunito said he strongly believed that Crown Group’s legacy is worth continuing.

“Crown Group remains a viable and profitable entity with its many shopping centres and retail assets, various divisions and hotel and serviced apartments.

“It is disappointing that Mr Sathio has chosen the direction that he has, given the many achievements Crown Group has accumulated throughout its years in business through its innovative design, award-winning projects and asset management.”

“My great concern is that this court action could result in the winding down of the company which in turn places at risk the loss of many people’s jobs who have worked with Crown Group for many years and are proud to be part of building the company’s legacy,” said Mr Sunito, adding that the impending court action could threaten to impact staff across Crown Group’s global platform.

“In the meantime, I am hopeful that there is still the opportunity for the dispute to be resolved and for my offer to be accepted so that we can continue the legacy of Crown Group.”

The Sydney-based Mr Sunito believes there is a better way that this can be resolved, where Mr Sathio can achieve his financial goal and the legacy of Crown Group can be continued and restored.

“It saddens me greatly that an internal dispute can place such a successful company – one of Australia’s leading property development companies – in jeopardy and destroy the many years of tireless work that we both have invested in the company together with so many of our loyal and hardworking staff.”

Mr Sunito said that in addition, he would continue to pursue new projects under the One Global Capital brand, which was completely separate to Crown Group.

Founded in 1996 by Mr Sunito, an architect and Mr Sathio, an engineer, Crown Group has completed apartment, hotel and retail developments predominantly in Australia.

The winding up notice was lodged with the NSW Supreme Court earlier this month through Mr Sathio’s company PNR International. A directions hearing is set down for Wednesday.

The action reportedly came to a head over authority to pay loans and other bills accrued by the company. Comment has been sought from Mr Sathio. Mr Sathio’s lawyer Lousia Tan declined to comment.

According to Crown Group’s most recent financial report lodged with ASIC, the company made an after tax loss of $7.8m in 2021 compared with a profit of $24.6m in 2020. Turnover dropped from $354.9m to $51.4m during the period as no new projects were completed during that financial year.

Originally published as ‘Surprised and concerned’: Iwan Sunito in dark over Crown Group’s liquidation