Voluntary administration delays development at North Cooranbong
Kent Kingston
Assistant editor, News and Editorial
Adventist Media Network
Wahroonga, New South Wales, Australia
The voluntary administration of a company the Seventh-day Adventist Church is using to develop land will delay an endowment for Avondale College of Higher Education.
No roadblock: Johnson Property Group proprietor Keith Johnson is optimistic about obtaining financial backing for development at North Cooranbong. “We’re confident,” he says. Credit: Melissa Wilson.
Johnson Property Group financed the rezoning of 250 hectares of land about two kilometres north of the Avondale Estate in Cooranbong but found it difficult to obtain further finance for development. According to the Australian Financial Review, Sydney accounting firm deVriesTayeh is now administering the business operations of the Johnson Property Group. The 28-day voluntary administration ends in May. If Johnson Property Group has secured finance by then, development will continue.
The church in the South Pacific owns the land, which it originally bought for the benefit of Avondale. The higher education provider will use income from the eventual sale of the land to establish an endowment fund, the interest from which will fund new infrastructure and special projects.
President Dr Ray Roennfeldt describes the delay as discouraging but adds Avondale would probably not have received income from the fund in the short- to medium-term. “North Cooranbong is a long-term development,” he says. “I’m disappointed, but I realise we have to be patient.” He notes Avondale is “continuing to make progress towards its strategic goals,” which includes applying for university college status.
The church in the South Pacific has released a statement in which it says it “regrets” the voluntary administration of its joint venture partner. The statement includes a reassurance to members that the church’s continued ownership of the land, through the Australasian Conference Association Ltd, and its financial position are not at risk—the statement notes the land is not subject to any registered mortgage. The statement also notes the church does not use tithes or offerings for property development.
Proprietor Keith Johnson dismisses the Australian Financial Review’s description of his company as “bankrupt.” “We’ve had amazing support from creditors,” he says in an interview with the church’s journal, Record. “I have faith we can work our way through this.”
Mr Johnson describes the voluntary administration as a “roadblock” and is optimistic about obtaining financial backing. “We’re confident,” he says.—with Brenton Stacey, public relations officer, Avondale College of Higher Education