John Russell’s residence at 11 Farrer Street, Braddon sold last weekend at auction. Photo: Independent.
The owner of the failed Pialligo Estate hospitality and farm produce business, John Russell, has sold his Braddon home for $2.35 million.
The sale comes as the land on which the business operated also appears to have found a new owner.
A title search shows that the Braddon property is in the name of one of Mr Russell’s companies, Llessur Pty Ltd, of which he is the director, secretary and sole shareholder, according to a company extract from ASIC.
Mr Russell is the director of 60 companies.
Pialligo Estate shut its doors at Kallaroo Road, Pialligo in late March after failing to weather a financial storm.
Two related companies – Pialligo Estate Operations and Pialligo Markets Pty Ltd – are now in liquidation with more than 500 creditors owed $10.5 million and nearly $600,000, respectively.
The four-bedroom property at 11 Farrer Street sold at auction last weekend, and in promotional material for the sale was described as “grand and sophisticated”, with lavish living areas, and inclusions to guarantee “you’ll live your best life in style”.
The title reveals five caveats – declared interest – placed on the property from March this year, one of which is a Pialligo Estate creditor owed $425,815.
But the ACT Commissioner for Revenue (ACT Revenue Office) has first claims for any amount owing to it.
The liquidators from RSM Australia said in their creditors report last month that they could not find any land or real property interests held by Mr Russell in his own right in the ACT and NSW.
The report also painted a damning picture of the Pialligo Estate business operation, concluding that it may have been trading while insolvent since 2018 and that its books do not accurately reflect its true financial position.
The liquidators say there is unlikely to be any dividend paid to unsecured creditors.
The 13 hectares of land on which the business operated is valued at $30 million and is being sold by the mortgagee who took possession on 29 March, but none of the proceeds can be used to pay creditors.
The land is now listed on the Savills website as being “under offer”.
The Braddon property was built in 2000 and Mr Russell bought it in 2001. Independent Gungahlin handled the sale.
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