According to an article in The Australian, a major retirement village development in Sydney’s outer southwest owes $15 million to investors and is more than two and a half years behind schedule.
The 1000-unit Viceroy Mount Gilead Retirement Resort project is being financed by Finchley Central which established the Gilead Trust to raise capital with investors. Viceroy is a third-party developer.
Investors in the development were offered returns of 12 per cent per annum with a bonus of 20 per cent of capital invested when the capital investment was repaid.
But The Australian reports that a number of investors who have tried to recover their capital from Finchley have been unsuccessful.
Finchley boss Simon Bell said some investor’s payments were late owing to a “computer issue” that “has now been fixed”.
The first stage of the development which included 40 homes was meant to begin in “early 2005” but a Viceroy spokesperson said the only thing that has been completed is a clubhouse.