Record Funds Management Limited, manager of the Record Realty Trust, has entered receivership.
Its debts are speculated at $1.8 billion.
HBOS appointed KordaMentha administrator yesterday; the bank is exposed with a direct $186 million loan.
Record Realty is Allco Finance Group offshoot.
Its owns nearly 40 commercial properties, mostly offices, in Australia, Europe and the United States.
At the end of June 30 2008, the company estimated its portfolio was worth about $1.93b.
Its debt was out $1.76b.
KordaMentha’s Craig Shepard told the AFR “one of our first tasks will be to complete an immediate review of the investment portfolio with a view to seeking expressions of interest from buyers for the whole portfolio, or part of it”.
In Melbourne, a half share of the group’s 1 Spring Street hasn’t sold since last year.