Aussie construction giant collapses leaving 1,300 apartments worth an eye-watering $1.5billion unfinished
The construction of 1,300 new homes worth as much as €1.5 billion is now at stake after a major Australian housebuilder went into administration.
Bensons Property Group announced on Friday that it has appointed Craig Shepard and Sebastian Ham of Korda Mentha as volunteer administrators of the company.
BPG is currently being used to build 1,337 apartments in Victoria, Queensland and Tasmania, worth a whopping $1.5 billion.
The Australian homebuilder was behind Chevron One, the iconic $485 million residential tower on Queensland’s Gold Coast.
It also built Montpelier House in Hobart, with 21 luxury homes worth up to $9.28 million each.
BPG will propose to creditors to continue its activities during the administration period.
“This will ensure that BPG’s employees, trade creditors and people who have purchased apartments are protected, and the $1.5 billion project development pipeline will be delivered – representing more than 1,000 new Australian homes,” the company said in a declaration.
“There are no plans for redundancies and, importantly, BPG is doing this with the support of its founder, its lenders and key investors.”
Bensons Property Group was behind Chevron One, the $485 million residential tower on Queensland’s Gold Coast (pictured)
Bensons is currently building or selling 1,337 apartments in Victoria, Queensland and Tasmania, worth a total of $1.5 billion (a BPG site is pictured)
But if a deal cannot be reached with creditors, the unfinished homes and company jobs could be at risk.
BPG CEO Rick Curtis said the voluntary board was “not an easy decision.”
“I would also like to reassure the hundreds of Australians who have purchased apartments in projects we manage that we are taking this action to help protect their interests and the interests of BPG.
“We currently have a development pipeline worth over $1.5 billion, and I am confident that we will get through this period and emerge an even stronger company.”
Industry tensions, including the Covid pandemic and rising material costs, have led to the collapse of other Australian homebuilders, including Porter Davis Homes last year.
Porter Davis had worked on at least 1,700 projects in Victoria and Queensland.
A young couple who invested $97,000 in their dream home were left with only a concrete slab after the major construction company suddenly collapsed, leaving hundreds of customers in the dark.