The construction of 1,300 new homes worth a staggering $1.5 billion is now up for grabs after a major Australian housebuilder went into administration.
Bensons Property Group announced on Friday that it had appointed Craig Shepard and Sebastian Ham of Korda Mentha as voluntary administrators of the business.
BPG is currently working to build 1,337 apartments in Victoria, Queensland and Tasmania, worth $1.5 billion.
The Australian housebuilder was behind Chevron One, the iconic $485 million residential tower on Queensland’s Gold Coast.
He also built Montpelier House in Hobart, with 21 luxury residences valued at up to $9.28 million each.
BPG will propose to creditors to continue trading during the administration period.
“This will ensure BPG employees, trade creditors and people who have purchased apartments are protected, and its $1.5 billion development pipeline will be delivered, meaning more than 1,000 new homes across Australia,” he said. in a statement.
“There are no plans for layoffs and, importantly, BPG does so with the support of its founder, its key lenders and investors.”
Bensons Property Group was behind Chevron One, the $485 million residential tower on Queensland’s Gold Coast (pictured)
Bensons is currently building or marketing 1,337 apartments in Victoria, Queensland and Tasmania, worth a total of $1.5 billion (BPG site pictured).
But if an agreement cannot be reached with creditors, unfinished houses and jobs at the company could be at risk.
BPG chief executive Rick Curtis said voluntary administration “was not an easy decision”.
‘I also want to reassure the hundreds of Australians who have purchased apartments in projects we are managing, that we are taking this action to help protect their interests and the interests of BPG.
“We currently have a development pipeline valued at over $1.5 billion and I am confident that we will get through this period and emerge from it as an even stronger business.”
Stresses in the sector, including the Covid pandemic and rising materials costs, have led to the collapse of other Australian housebuilders, including Porter Davis Homes, last year.
Porter Davis had been working on at least 1,700 projects in Victoria and Queensland.
A young couple who invested $97,000 in their dream home were left with just a slab of concrete after the major construction company suddenly collapsed, leaving hundreds of clients in limbo.