Sunshine Coast development company Wow Group Buddina in liquidation owing $19m
A Sunshine Coast development company, run by a self-proclaimed “remarkable female property developer” has gone into liquidation, owing more than $19m to subcontractors, lenders and the tax office.
A Sunshine Coast development company, run by a self-proclaimed “remarkable female property developer” has gone into liquidation, owing more than $19m to subcontractors, lenders and the tax office.
Wow Group – Buddina, whose principal place of business is registered as a three-bedroom rental home at Alexandra Headland, was placed into voluntary liquidation on June 30, with Paul Nogueira of Worrells appointed liquidator.
The company’s sole director is Lorna Willis, 68, whose own website describes her as a “rule-breaker, glass ceiling smasher, motorbike rider, mother, speaker and a developer of property, people and purpose”.
As well as development, Ms Willis has waded into financial self help and corporate mentorship, and founded a property support group named “Wow Property Women” which offered members lessons in “how to create wealth using property”.
Wow Group was developer of near-complete apartment complex Lowanna Beach Resort, which still had apartments advertised for sale between $1.35m and $2.6m this week.
But construction subcontractors to the job say they are owed thousands in retentions for the job, with some reporting payment issues as far back as April.
“(Ms Willis) stopped taking calls,” said one subcontractor.
The company’s website has been offline since April, and Ms Willis’s LinkedIn profile was deactivated around the same time.
A report into company affairs and property – a document completed by Ms Willis outlining the company’s assets and liabilities – shows the company owes more than $12m, including $10m to a private lender and more than $770,000 in unpaid tax.
Another $6m is owed to a company named Invest Partners - which ASIC records showed was also directed by Ms Willis.
Wow Group owed about $750,000 to subcontractors and had $413,458 in other accounts payavle, according to Ms Willis’s report.
The report said the company still owed 12 apartments, with estimated net value of $17.3m
Ms Willis declined to go into specific of how her company failed.
“We’re devastated, obviously, but we’ve been backed into this position with all the things that have happened in the course of this development,” she said.
“We’ve had things happening that you wouldn’t normally have happen in this process.
“I can’t go into it much”
Ms Willis claimed issues with the project’s buildeing company had added to her company’s troubles, but would not say what the issues were.
Her report listed a $2.5m “builder’s claim” owed by Wow Group, an amount she marked as “disputed”.
Ms Willis said while some buyers in the Lowanna project had settled their contracts, the project was not yet complete.
Among the creditors was Hickey Lawyers, owed $19,031; Marsh Advantage Insurance, owed $28,831 and Sunshine Coast Council, owed $19,093.
“We’re devastated to all involved, the subbies in particular … we’ll do what we can for them,” Ms Willis said.
“Covid really knocked us around and then the pricing – it's been a really tough time to be in the industry.”
Ms Willis said she had no direct employees who would be impacted by the collapse.
Mr Nogueira said he was in the process of assessing the company’s assets and liabilities.
“Our preliminary assessment is that the company has gone into liquidation due to financial difficulties and cost overruns on its building project at Buddina,” he said.
“We will have further details for creditors over the coming months as we continue to assess and deal with the company’s affairs.”
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Originally published as Sunshine Coast development company Wow Group Buddina in liquidation owing $19m
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