Bendigo real estate agents expect the Bendigo Vineyard Estate land banking project to be in demand when it’s put on the market soon by liquidators, as they believe the 21st Century Group got the bargain of the century when they acquired it for $1.5 million in 2014.
Agents in Bendigo believe there will be plenty of competition to acquire the Bendigo Vineyard Estate, despite liquidators appointed by ASIC on October 7 in Melbourne’s Federal Court over the dispute on land banking that’s engulfed five of 21st Century’s projects.
A potential buyer told ANR that upon enquiry, agents told him there would be a lot of demand for the estate as Jamie McIntyre from the 21st Century Group acquired it for a bargain.
21st Century’s management has also seen the Bed and Breakfast bookings hit record levels, which have doubled since their management has taken over its operations.
Agents also believe many developers will be after the site, as it borders residential housing and is in a prime area to be rezoned.
McIntyre had plans to turn it into a $160 million dollar luxury resort estate and had pre sold 128 options, which are effective pre sales for 25% of the proposed lots 600 odd lots.
Although only rezoned farmland, savvy investors in the know have said it’s a prime area to be rezoned and the council has already added it to its land in investigation area.
With strong Bendigo population growth and ongoing demand for housing, the Council has to increase the available housing lots.
Even if it took 10-15 years, the project end value 21st Century had planned was $160 million.
Options holders under the land banking scheme with 21st Century stood to gain significantly until ASIC stepped in and has been trying to destroy their investment ever since.
Many are now dismayed that because of ASIC’s ignorance, other developers will scoop up the asset and make up to $160 million and the option holders ASIC have dudded will miss out.
Not to mention the losses 21st Century Group will sustain.
ASIC are believed to be politically motivated, as many in the property industry are bemused at how they can try and say property options are a financial services product when they clearly aren’t or certainly have never been. Moreover, ASIC refuse to show if/whether the law was changed to make them a Property Regulator or to make Property Options a financial services product. When did this law change or when did this appointment occur?
Land banking investors are furious with the ASIC that will see them dudded whilst others would profit from these projects.
One developer offered $4.7 million to acquire the site, but ASIC refused to allow the sale.
Many say ASIC just want liquidators appointed first to damage the 21st Century Group.
Once appointed, the NAB bank is expected to foreclose and put the property on the market and option holders will lose their protection because of ASIC.
ASIC also tried to claim that the 21st Century Botanica in Shepparton would never get rezoned; yet once again buyers are circling to snap it up.
Offers have been made at more than double of what McIntyre acquired it for in 2013.
Developers know the Council is now approving a nearby farm into rural residential despite only saying six months ago that it wouldn’t happen for 10 years.
Once again, ASIC’s ignorance of how land banking works will see option holders dudded and others profit handsomely from the losses ASIC cause.
McIntyre submitted a Senate Hearing Submission into the matter, which can be read here:
The end value of 21st Century’s five land banking projects if approved was approximately $1.5 billion, which now will be lost due to ASIC’s actions.
Option holders are preparing a class action against ASIC for having them being duped out of options they had initially acquired.