The Australian Stock Exchange this morning suspended trading in the Austcorp Property Group as the debt-strapped property company was placed in the hands of voluntary administrators. BRI Ferrier has been appointed administrators to Austcorp Group Ltd, Austcorp Funds Management Ltd and Austcorp Towers Investment Pty Ltd.

The announcement brings to a halt work on the $1 billion, 79-level “Vision” project in the heart of Brisbane’s CBD.

It will also halt the proposal by Treasurer Wayne Swan to provide funds to Austcorp from the Rudd Government’s Australian Business Investment Partnership, known as Rudd Bank. Swan said in March that the “Vision” tower was “just the sort of project” to qualify for federal finance.

A statement from BRI Ferrier said: “The appointment of the voluntary administrators is due to the stressed economic conditions Austcorp is now facing following the global credit crisis and overall recession.”
It said that Austcorp remained “optimistic” about the Vision tower black and that it will go ahead “once a restructure is undertaken”.

The media contact for Austcorp is listed as former 60 Minutes producer Anthony McClellan of AMC Media who recently represented bikies’ organisations in their fight against draconian new laws proposed in NSW, Queensland and South Australia.

Peter Fray

Get your first 12 weeks of Crikey for $12.

Without subscribers, Crikey can’t do what it does. Fortunately, our support base is growing.

Every day, Crikey aims to bring new and challenging insights into politics, business, national affairs, media and society. We lift up the rocks that other news media largely ignore. Without your support, more of those rocks – and the secrets beneath them — will remain lodged in the dirt.

Join today and get your first 12 weeks of Crikey for just $12.

 

Peter Fray
Editor-in-chief of Crikey

JOIN NOW