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An Australian building giant behind some of the nation’s biggest developments, including a 41-residential tower on Chevron Island on Queensland’s Gold Coast, has entered voluntary administration.
Bensons Property Group Pty (BPG) announced yesterday that it had made the “difficult decision” to appoint Craig Shepard and Sebastian Ham of Korda Mentha as voluntary administrators.
The company cited challenging conditions in the construction and property development sector, noting that the industry had faced “an extremely difficult time, particularly post-COVID”.
BPG was founded in 1994, by philanthropist and self-made developer Elias Jreissati.
The company focuses on building large and luxurious apartment blocks in Victoria, Queensland and Tasmania.
“This Australian family business has a 25-year track record in delivering luxury beyond the expected,” the website says.
“During that time, every project taken to market has been completed, resulting in over $2 billion of iconic residential property.”
One of those projects includes a 41-residential tower on Chevron Island, which is expected to be completed late next year.
A four-bedroom apartment, part of the tower, recently sold for $9 million to a well-known Sydney family.
Other notable projects include Bensons’ Society Armadale homes, in Melbourne’s inner south.
Under a proposal to be put to creditors, BPG intends to continue trading during and beyond the administration and receivership period.
The company confirmed there were no plans for redundancies.
“Bensons Property Group is a proud property developer that is in the business of delivering homes for Australians to live in and own, but we need this reset so that can continue,” BPG managing director and chief executive Rick Curtis said.
“This was not an easy decision, however, I want to assure our people that there are no plans for redundancies.”
The company stated that it believed the process offered the best opportunity to navigate through this period and emerge stronger.
“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,” Curtis said.
“We currently have a development pipeline worth well over $1.5 billion, and I am confident that we will get through this period and come out of it as an even stronger business.”
BPG is the latest in a long list of construction businesses that have fallen into administration or collapsed entirely since the pandemic, with supply chain disruptions, skilled worker shortages and high material costs all contributing factors.
