iProsperity enters voluntary administration

iProsperity Group paid Canada’s Brookfield c$200m for East Melbourne’s Pullman on the Park in late 2018.

iProsperity Group, an active hotel player representing high net-worth Asian investors – entered voluntary administration last night.

Cor Cordis’ Barry Wight said its “urgent focus is on stabilising the iProsperity Group and commencing a full and thorough investigation into its affairs, including certain court proceedings that remain on foot.”

“It remains too early to determine whether a viable restructure plan can be developed, but we look forward to working closely with the iProsperity Group stakeholders over the coming weeks,” the executive added.

Thirteen entities – listed below – are affected.

Mr Wight is working with colleagues Jeremy Nipps and Alan Walker.

iProsperty’s group chief executive is Michael Gu.

COVID-19 grounded iProsperity’s growth

The landlord has been one of the country’s most active hospitality investors – in March announcing it would buy seven Kimpton hotels – 1123 suites – in the United States, with Singapore’s Soilbuild Group Holdings.

That deal, with New York REIT Xenia Hotels and Resorts was sealed at $720m (story continues below).

Last September iProsperity Group agreed to acquire a portfolio of 23 inns (17 of them freehold) from AccorInvest, for c$212.6m.

A year earlier it paid Canada’s Brookfield c$200m for East Melbourne’s Pullman on the Park (pictured) – a prime apartment development site.

Two years ago it sold Chaolong Developments Glen Waverley’s 200-room Novotel, and a neighbouring shopping centre, Century City Walk, for a total of $145m.

iProsperity spent $118.7m on those two properties in two deals over several months from December, 2016.

Also four years ago it outlaid $88.8m on a site earmarked to make way for a luxury guesthouse, at 333 Kent Street, Sydney.

Like many hospitality providers, business has been greatly negatively affected by COVID-19 led changes including social distancing and travel.

The thirteen iProsperity entities affected by the administration:

  • i-Prosperity Pty Ltd (administrators appointed) (ACN 142 091 585)
  • iProsperity Underwriting Pty Ltd (receivers and managers appointed) (administrators appointed) (ACN 619 068 969)
  • iProsperity Australia Pty Ltd (administrators appointed) (ACN 162 090 146)
  • iProsperity Group Holdings Limited (administrators appointed) (ACN 629 625 270)
  • i-Prosperity Group Pty. Ltd. (administrators appointed) (ACN 607 564 527)
  • iProsperity Holding Group Pty Ltd (administrators appointed) (ACN 613 639 188)
  • G&H Partners Co Pty Ltd (receivers and managers appointed) (administrators appointed) (ACN 164 926 443)
  • Cornerstone Capital Investment Group Pty Ltd (administrators appointed) (ACN 612 659 079)
  • iPG Fund Services Pty Ltd (administrators appointed) (ACN 622 910 187)
  • i-Prosperity Capital Management Pty Ltd (administrators appointed) (ACN 635 134 977)
  • i-Prosperity Capital Pty Ltd (administrators appointed) (ACN 605 317 360)
  • iProsperity Cornerstone Management Pty Ltd (administrators appointed) (ACN 620 127 291)
  • IPG Asset Services Pty Ltd (administrators appointed) (ACN 626 208 508)

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.