Griffith Central has new owners and a new management team. Photo: Oliver Jacques.
There was a major change at Griffith’s biggest shopping mall last month, with new management coming in and renewed efforts to attract more tenants.
But who actually owns Griffith Central now?
The answer is a Sydney-based finance company called GEMI 169 Pty Ltd, which took control of the mall after a lengthy court battle with businessman and previous owner Frank Violi and his companies.
GEMI 169 became what is known as a “mortgagee in possession”. In simple terms, that means it was the lender and took control of the property after loans secured against the shopping centre went into default.
Mr Violi has consistently maintained he was the victim of fraud and that he never authorised the loans. However, after years of litigation, the NSW Supreme Court ultimately found in favour of GEMI and allowed it to enforce the mortgages.
Today, Griffith Central is managed by Brisbane-based property company First Asset Management on behalf of GEMI 169.
Who is GEMI 169?
GEMI 169 is not a shopping centre company. It is one of a number of companies within the broader GEMI Investments group, a private lending business headquartered in Sydney.
The GEMI group is a non-bank lender that provides finance to property developers, investors and businesses, usually using land or buildings as security.
The company says it has provided billions of dollars in property-backed loans across Australia.
Many people may wonder why someone would borrow from a private lender rather than a bank.
The answer is usually because banks have strict lending rules. A developer may need money quickly, be seeking a large loan, or be undertaking a project that a traditional bank considers too risky.
Private lenders can often move faster and be more flexible than banks, but their loans usually come with higher interest rates and fees.
Who runs the company?
According to company records, GEMI 169 has three directors who are well-known in elite business circles: George Fleming, Michael Cooper and Justin Epstein.
Mr Fleming founded GEMI Investments and has spent decades working in property and finance.
Mr Cooper previously served as chief executive of The Athlete’s Foot Australia.
Mr Epstein is part of GEMI’s leadership team and has been involved in the company’s lending and investment activities.
While Griffith Central is one of the group’s high-profile assets, GEMI’s core business is lending money rather than owning shopping centres.
Recent GEMI controversy over bad loans
The company has also attracted attention in the national financial press.
Earlier this year, The Australian reported that a GEMI-managed investment fund had suffered major losses after a series of bad loans, including exposure to several troubled property and hospitality ventures.
The newspaper reported the fund had written off almost $140 million and suggested assets, including Griffith Central, could eventually be sold to help repay investors.
The mall’s future
However, First Asset Management managing director Angelo Efstathis told Region there were no plans to sell the shopping centre.
Instead, the company says it is focused on improving the centre, attracting new tenants and strengthening its position as Griffith’s main shopping destination.
The Australian also reported that GEMI had secured Dan Murphy’s as an anchor tenant – a major retailer intended to attract shoppers and boost foot traffic through the centre. However, the state’s liquor regulator says no approval has been granted for a Dan Murphy’s store anywhere in Griffith.
Region contacted GEMI seeking a response to claims about the shopping centre and company made in national media but did not receive a response.
For now, Griffith Central remains under the control of a finance company that never set out to own a shopping mall, but ended up with one after one of the biggest commercial court battles in Riverina history.
