Land & Homes Group (ASX:LHM) - Voluntary Administration

Land & Homes Group (ASX:LHM), a Brisbane-based developer, entered voluntary administration on 2 December.

In 2016, the company purchased land at 44-100 Barry Parade in Brisbane’s Fortitude Valley for $20 million. It had developed plans to build 491 apartments on the site. However, construction was put on hold due to Covid. Post-Covid, the company determined that the project as planned was no longer feasible due to escalating costs.

Over the past 12 months, the company has engaged with several investors to pursue equity funding and had sought expressions of interest for the project and the associated freehold land, but these efforts were unsuccessful. In addition, secured lender United Overseas Bank refused to renew the company’s finance facility.

As a result of all of these factors, the directors determined that the company was unable to continue as a going concern and placed it into voluntary administration. Geoffrey Hancock of Hamilton Murphy Advisory was appointed voluntary administrator and will now assess the company’s financial position before making any recommendations.