The idle construction site at 11 State Circle, Forrest. Photo: Ian Bushnell.
Mystery surrounds the state of prominent Canberra developer Keggins as the company behind its 11 State Circle development heads for liquidation and its financier searches for another builder to complete the high-end townhouse project in blue-ribbon Forrest.
The Keggins website has been taken down, the office phone disconnected, and an extensive Blackshaw Manuka listing for 11 State Circle pulled.
Keggins is behind the Sapphire and Penthouse 405 developments at Kingston Foreshore and the W2 residential tower in the Woden Town Centre.
Region reported last month that work had ceased on the Forrest project before Christmas and the site has been locked up.
In early March, a sign appeared on the gates saying all enquiries should be referred to the receiver, Newpoint Advisory.
ASIC documents show Newpoint was appointed by instrument by corporate trustee Certane Pty Ltd on 6 March and the company in question was JJ Forrest Pty Ltd, whose sole director is Jin Wang, the director and owner of a string of Keggins companies.
Mr Wang has not responded to emails.
On 19 March, Boss Building, which had done early work on the project and was owed money, applied to have JJ Forrest Pty Ltd wound up.
It is understood that Mr Wang failed to refinance the project and could not restart the project. Newpoint was appointed receiver, leaving purchasers in limbo and subcontractors out of pocket.
On 11 March, Cathro & Partners was appointed receiver to another Keggins company, Keggins W Pty Ltd, relating to properties in the W2 building in Woden. The other party in the deed of appointment was MilDesi Security Holdings Pty Limited as trustee for the Keggins Security Trust.
The Forrest project financier is believed to be keen to complete the development and is in the process of finding another builder to take it over, but that could take months, particularly when some operators would be loath to take on something they hadn’t started and the associated risk.
However, the situation also threatens to bring down the whole Keggins operation.
Sources say Mr Wang is a developer builder who controlled every facet of a project.
The possible collapse of another Canberra building business has shaken the industry, with members unwilling to talk about it.
The situation will only confirm in the public’s mind the need for developer licensing laws, which passed the Legislative Assembly last year.
Keggins acquired the 3768 square metre parcel of land 500 metres from Parliament House in March 2021 for $8.41 million, almost $2 million over the reserve.
The project was marketed as a statement development blending impeccable design, luxurious inclusions and spacious floorplans, with the nine townhouses last advertised at $3.85 million each.
It is not known how many had been sold off the plan.
In December 2023, Keggins spent more than $26 million buying four blocks of land from the Suburban Land Agency in the Lawson Stage 2B estate in Belconnen.
