Wija leased vacant land site in Chatswood that had a 99-year term. The Development Application on the land stipulated that it was to construct a 10 storey mixed residential/commercial complex within a specified timeframe.
Unfortunately, Wija did not commence the project within the time frame and consequently a breach notice was issued by the respective local Council which gave the secured creditor 6 months to rectify. Before the notice period expired, Olvera Advisors were Appointed as receivers. As receivers, we disputed the right to terminate the lease. In particular, we consider that the lessor was not allowed to terminate without giving the secured creditor 6 months to rectify the breach. To rectify the issues, we commenced proceedings seeking from the court for relief against Forfeiture and the leaseback and damages.
After nearly 12 months of legal proceedings, both sides are irresolute in the stance. All offers made by PAT to settle (including significant compensation) are rejected by the lessor.
Receivers receive an unsolicited offer from an interested party offering to purchase the property for a significant sum with the intention of building out the existing DA.
Olvera Advisors as receivers then entered into put and call option with the interested party and were able to resolve litigation at the mediation and sell the lease and generating a significant return to the secured creditor.
