Bank of Communications provides a $138.1 million AUD to Greenland Property Group for the Leichhardt Green Development Project

Project narrative

In or around 2016, the Bank of Communications Co., Ltd. entered into a $138.1 million AUD facility agreement with Greenland Property Group Pty Ltd (Greenland Australia) — the Australian subsidiary of Chinese state-owned real estate developer Greenland Holdings Corp., Ltd. — for the Leichhardt Green Development Project. The proceeds of the loan were to be used by the borrower to support a five building mixed-use development at 22 George Street, Leichhardt, Sydney, New South Wales, known as Leichhardt Green, with a total capacity of 287 apartments across five residential tower buildings ranging from four to nine stories in height with five retail tenancies on the ground floor of Building B, one-and-a-half levels of basement car parking, and eight lifts serving the five buildings including a garbage hoist. Greenland purchased the Leichhardt Green development site for $47.1 million AUD in March 2014. On May 20, 2016, Greenland Australia appointed Richard Crookes Construction as the principal design & construction contractor. Bates Smart served as architect.. Arcadia provided facade battens and balcony screens for the project. Plank Floors provided flooring services for the project. Extreme Fire Solutions was responsible for the installation of the sprinkler system. SCP Consultants served as engineer. Hanson served as concrete supplier. Penetron Australia provided waterproofing and durability to the concrete, in part to protect against contaminates at the site. The project encountered implementation delays. The Leichardt Green Development is located at a former Kolotex factory site, suspected of having chemical hazards and contaminants. In 2014, the Municipality of Leichhardt rejected Greenland's initial development proposal based on the alleged presence of this contaminants. Then, containments were discovered, leading Greenland to propose a voluntary cleanup plan to the New South Wales Environment Protection Authority (EPA), which was approved. However, Greenland failed to implement the plan, leading to EPA to order Greenland to clean up the site before pursuing the project via a new remediation plan. Construction was expected to begin in June 2016. The project was expected to reach completion in early 2018. The project was completed in February 2018.