The construction of 1,300 new homes worth a staggering 1.5billion now hangs in the balance after a major Aussie home builder entered administration.
Bensons Property Group announced on Friday it had appointed Craig Shepard and Sebastian Ham of Korda Mentha as voluntary administrators of the business.
BPG is currently employed to build 1,337 apartments in Victoria, Queensland and Tasmania, worth an eye-watering $1.5billion.
The Aussie home builder was behind Chevron One, the iconic $485million residential tower on Queensland’s Gold Coast.
It also built Montpelier House in Hobart, with 21 luxury residences worth up to $9.28million each.
BPG will propose to creditors that it continue trading during the administration period.
‘This will ensure BPG’s employees, trade creditors and people who have purchased apartments are protected, and its $1.5billion project development pipeline will be delivered – which means over 1,000 new Australian homes,’ it said in a statement.
‘There are no plans for redundancies and, importantly, BPG does this with the support of its founder, its lenders and key investors.’
Bensons Property Group was behind Chevron One, the $485million 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 $1.5billion (a BPG site is pictured)
But if a deal with creditors can’t be reached, the unfinished homes as well as jobs at the company could be in jeopardy.
BPG CEO Rick Curtis said the voluntary administration was ‘not an easy decision’.
‘I also want to assure the hundreds of Australians who have purchased apartments in projects that 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 worth well over $1.5billion, and I am confident that we will get through this period and come out of it as an even stronger business.’
Strains on the sector including the Covid pandemic and the rising material costs has led to the collapse of other Aussie home builders, including Porter Davis Homes last year.
Porter Davis had been working on at least 1,700 projects in Victoria and Queensland.
One young couple who put $97,000 towards their dream home were left with just a concrete slab after the major building company suddenly collapsed – leaving hundreds of customers in limbo.
Daily Mail Australia has contacted BPG for comment.
