FAIRY Meadow's Ambience development has been thrown into doubt after the Belmorgan company behind the project was placed into administration.
Work has stopped on the building, on the corner of the Princes Hwy and Elliotts Rd, after St George Bank appointed a receiver on January 5.
The plans for the site include three floors of retail, including a Coles supermarket, as well as three floors of residential property.
However, nearby residents said a giant crane was dismantled and moved off site on Sunday.
The company behind the Ambience proposal, SPV 7 Pty Ltd, falls under the Belmorgan group.
The Belmorgan group companies now in administration include:
*SPV 7 Pty Ltd, placed into administration by financier St George Bank;
* Wollongong City Plaza Pty Ltd, owner of the Gravity site, which was placed into administration by lender Suncorp in December; and
* Opilda Holdings Pty Ltd, developer of the Gravity site, which was placed into administration in September.
The Ambience project was aimed at revitalising Fairy Meadow's business district. The site was bought for $7.8 million in April 2005 with finance from St George and Perpetual.
St George yesterday confirmed it had hired receivers but would not say why, citing privacy restrictions.
It is not the only organisation chasing the Belmorgan company.
In November 2008, Wollongong City Council put in a winding-up order to recover "rates and associated charges" associated with the Ambience site.
Belmorgan principal John Kosseris believes St George acted prematurely when it appointed a receiver. He said he was on holiday in Queensland when he was contacted by the receiver and had no prior warning.
"We had no idea they were going to do it," he said. "With the bank putting receivers in, that is going to compromise our potential to pay creditors."
He said he was confident he would be able to refinance the $30 million Fairy Meadow project with the help of overseas lenders which he did not name. He said the project was six months from completion and was confident the company could recover.
"We are not dead and forgotten," he said.
"It will now be a matter of when we will refinance."
Mr Kosseris lashed out at Wollongong City Council yesterday, which he said had failed to grant him an approval for early works on the $300 million Gravity development in Corrimal St.
"We could have been in there building," he said.
The council did not comment on the claim when contacted yesterday.
The Gravity project is being assessed by the Department of Planning.
But Mr Kosseris is confident about the future of his projects in the district.
"I'm confident that both projects will be built whether it is us or someone else," he said.
"But I'm confident it will be us."
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