Part of major property developer Caydon Property Group placed into liquidation
Part of major property developer Caydon Property Group has collapsed and been placed into liquidation.
The company says it has been dealt one difficult market situation after another, pointing the finger at prolonged COVID-19 lockdowns in Melbourne and accelerating construction cost pressures.
The property group is currently developing a commercial precinct at the site of the old Nylex silos in Melbourne, but said two other projects – Home in Alphington and Due North in Preston – will not be affected by the collapse.
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Apartment building by Caydon Property, in Moonee Ponds, Victoria. Tash Sorensen
Managing director Joe Russo said going into liquidation was an "extremely difficult" decision to make.
"The latest and really confronting challenge we've been facing has been the pricing factors affecting the Australian property and construction industry," he said.
"The significant disruption to our business created by two years of COVID-19 lockdowns in Melbourne has caused business uncertainty and severely impacted sales.
"Pressure on construction costs resulting in builder insolvencies and supply chain interruptions, and now the interest rate pressures and negative house price sentiment has placed additional pressure on our operations."
Purchasers of Caydon's properties have been advised that their current contractual arrangements should not be impacted by the company going into liquidation.
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