Descon Completes Condev’s Gold Coast Projects

Descon Group Australia has completed one of the projects it took over after the collapse of Condev last year and is nearing completion on another.

Descon signalled it had finished Brooke Residences in Robina on the Gold Coast after taking over 12 months ago.

The first residents have now moved into their apartments at the nine-storey, 95-unit residential apartment building, which is part of SPG Land’s $162-million Cambridge Residences precinct.

The second site it took on after was another Gold Coast project, Allure on Chevron Island, which Descon took on for developer Macquarie York in 2022. It is set to complete in the coming weeks.

Descon called the Brooke completion an “exceptional milestone” which it achieved with minimal disruption to the original construction program.

It is also some welcome good news for a sector suffering from fixed-price contracts and growing inflation, driving up the cost of materials and all leading to a maelstrom of insolvencies during the past few months, with more to come. 

Condev went into administration in early 2022, hot on the heels of the administration of ProBuild, with projects worth up to $1 billion hanging in the balance. 

The quick-fire insolvencies shook the industry and the builder blamed labour shortages, price hikes and major flood damage which led to delays and its eventual collapse.

At the time it was placed into liquidation, it had 18 projects under construction in south-east Queensland.

These included Aria Property Group’s Rivière project at Brisbane’s Kangaroo Point, which was completed in August, One Cannes at Surfers Paradise and Shoreline Queens Beach at Scarborough.

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▲ The future of developments including Shoreline Queens Beach in Scarborough were left in limbo by the Condev’s collapse.

Descon Group chairman Danny Isaac said the Brooke Residences were sold out and the group was pleased to have been part of the industry response to the Condev collapse.

“While the significant headwinds in the market are yet to ease, the co-ordinated industry effort in seeing key projects like Brooke Residences completed is ensuring that supply continues to reach the market at a time it is needed most,” Isaac said.

“The most challenging area of the market continues to evolve around escalating subcontractor costs and lack of reliable supply, and we will continue to manage this during the sector-wide volatility.”

Descon is also scheduled to complete work on its Southport project Waverley Residences in mid-2023 followed by Akin in South Brisbane. 

Article source: Queensland Property Investor