Apr 192007

According to today’s Fin Review, yet another property development and investment entity is poised to go under.

Westwater Property Group are in severe financial difficulty, with it’s major funder – National Australia bank – said to have made moves to appoint Administrators. Another as yet un-named creditor for Westwater’s Esprit Apartments project in Melbourne is also poised to appoint KordaMentha as receiver.
Westwater has apparently gone heavily into the investment property market, with blanket advertising on Melbourne radio spruiking a guaranteed 10-year rental guarantee. The group includes Westwater Finance, dealing in the funding of its own project sales to investors.
With a now standard line of…

“It is our one aim to help you achieve financial security and retire in comfort… a priority for all Australians.”

…appearing on the company website as a mission statement, it is distressing to note that another ‘get-rich-quick’, sole directorship developer is allegedly heading for the last round-up. David de Garis, Westwater’s sole director, is yet to respond to media queries for clarification of his company’s status.
Being associatred with the finance industry in general, and housing/development sector of the industry in particular, Bannerman cannot help but wonder why these investment developer entities aren’t more closely scrutinised both by the Australian Securities and Investment Commission, and primarily by their bankers and finance partners. Surely prudentiality decrees a stronger hand from bankers, such as the NAB?

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