iProsperity enters voluntary administration
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)
