Remi had an appraisal of the property at around $15 million as of September 2020. However, this figure has been questioned by the liquidator, Jirsch Sutherland.
Jirsch Sutherland partner Chris Baskerville said it was “up to the receivers to get the market price”.
“The question that interests me as an administrator is whether the first mortgagee [Accedo] can be paid and if excess funds are available,” he said.
“If there’s any money left after that, I’d be worried, and it might start a fight between me. [on behalf of investors] and other secured creditors.
Also for sale is a 3.72ha mixed-use site at 585 Derrimut Road opposite Tarneit Station in Melbourne’s west, bought by Remi for $9m in December 2021.
ASX-listed N1 Holdings, which holds the first mortgage on the property and owes $9.27 million, has appointed Sam Kaso of Cor Cordis as receiver and manager.
The property, which was valued at $15.45 million according to a valuation report obtained by the administrators, was put up for sale in early July by CBRE, but has yet to be sold.
Jirsch Sutherland’s investigations have identified a third property, a 24.6ha site at 886-940 Beattys Road in Rockbank, which Copa Developments (part of the Remi Group) has entered into a purchase agreement with a company led by former Wyndham councilman and developer Intaj Khan for $30 million. Two deposits totaling $4.5 million were made to Mr Khan’s Aintree Major Town Shopping Center Pty Ltd.
The administrators (now liquidators) said in the June report that they were conducting “thorough investigations into this transaction to determine” among other things the status of the contract and whether the deposit could be refunded.
Despite raising $129 million from investors at lavish investment seminars where returns of up to 8% were “guaranteed,” Remi failed to deliver a single development project. It was likely insolvent since it was founded as C2 Capital in 2018 by Peter Terrill, Jirsch Sutherland said.
Mr Terrill was ousted last year and replaced by former head of the capital team Mark Prestige, who became Remi’s sole director.
Administrators estimated that only 20-30% of investors’ money was actually deployed to buy a property, and the rest was spent on operational costs, commissions and fees.
A report to creditors filed with the business watchdog in June revealed that two properties Remi acquired with investor capital were sold at a loss last year.
Investors are unlikely to get more than 10¢ on the dollar, according to the June report filed by directors.