City Pacific offshoot CP1 has crashed to a $109 million net loss for 2008 with massive writedowns in its property assets marking the developer’s worst year on record.
While Daniel Grollo, a director of CP1, could not be contacted for comment last night, a spokesman for his private construction company, Grocon, said the Grollo family was monitoring its investment closely.
Grocon bought a 17.9 per cent stake in CP1 from embattled property financier City Pacific in June last year for $38 million. The Grocon spokesman last night said the stake was secured through finance forwarded by City Pacific, CP1’s former parent company. CP1’s latest result has been driven by $110.2 million in impairment losses, including $74.7 million in property writedowns.
