Parts of prominent Asian-backed developer Caydon, a developer of hundreds of apartments across the melbourne suburbs of Alphington and Preston, have gone into liquidation, blaming prolonged Covid-19 lockdowns, interest rate hikes, lack of labour and skyrocketing building costs.
Caydon is also developing a $1bn commercial precinct at the site of the old Nylex silos in Melbourne which were once marked out by the iconic Nylex Clock. Caydon bought the mostly derelict site for $38m in 2014 and it has also been targeted by trespassers who have set small fires.
Caydon managing director Joe Russo says the company has delivered more than 3,000 apartments, as well as hotels and offices, in its long history but over the past few years it has dealt with one difficult market situation after another.
The company’s auditors had also warned about its finances even ahead of the coronavirus crisis.
“The latest and really confronting challenge we’ve been facing has been the pricing factors affecting the Australian property and construction industry,” Mr Russo said.
However, two developments under construction — the 324-unit HOME apartment project in Alphington and the 107-unit Due North in Preston — are fully funded and would not be…