iProsperity Group has become a casualty of COVID-19 with administrators appointed on a number of its entities
COO blames COVID-19
iPG owns the Pullman on the Park Melbourne & Sydney hotel development
Acquisition of AccorInvest's Australian Portfolio is apparently no longer going ahead
iProsperity Group has become a casualty of COVID-19 with administrators appointed on a number of its entities.
Gary Sue Fong, chief operating officer at iProsperity, blamed COVID-19, noting that their business had unfortunately been hit "very hard".
"The majority of our assets are in the hotel and commercial space, where vacancy rates are very high"
iPG owns the Pullman on the Park Melbourne hotel and a Sydney office building slated for hotel redevelopment.
The acquisition of AccorInvest's Australian Portfolio is apparently no longer going ahead. The group was also in the process of acquiring seven Kimpton hotels in the US.
The entities in administration are iProsperity Underwriting, i-Prosperity, iProsperity Australia, iProsperity Group Holdings Limited, i-Prosperity Group Pty. iProsperity Holding Group, G&H Partners Co (also in receivership), Cornerstone Capital Investment Group, iPG Fund Services, i-Prosperity Capital Management, i-Prosperity Capital, iProsperity Cornerstone Management and IPG Asset Services.
Cor Cordis said its role as administrator did not extend to the underlying investments of funds managed by the respective IPG entities.
Problems emerged for iProsperity this year when iProsperity Underwriting was placed in the hands of receivers after not paying interest of more than $3 million due on loans provided by A-REIT minnow, Agricultural Land Trust.