Developers of six major Queensland projects left in limbo after builder GCB Constructions collapsed into voluntary administration have taken back their work sites.
Construction contracts for the developments dotting the state’s south-east corner from the Gold Coast to the Sunshine Coast have been terminated.
They include multi-million-dollar expansions at Ramsay Health’s Sunshine Coast University Private Hospital and Caboolture Private Hospital.
Among the others are Aria Property Group’s recently upscaled Canopy House apartment tower project at Brisbane’s inner-city Kangaroo Point and three Gold Coast developments—the sold-out Si boutique apartment tower at Bilinga and Rayjon’s Vantage View at Benowa and Vantage Burleigh developments.
An update from the administrators to subcontractors said the “projects have been terminated and works taken back by the developers”.
It also said “as far as we are aware” the contracts for five further projects have not been terminated. They included the twin tower Marine Quarter Southport development, Cote Palm Beach, Wategos Byron Bay, 35 Garden Street Southport and Tallebudgera Surf Life Saving Club.
Gold Coast-based GCB Constructions, headed by Trent Clark, was placed into the hands of administrators David Stimpson and Adam Kersey from SV Partners on July 26, a little under 24 hours after its Queensland builder licence was suspended for failure to pay debts.
Building came to an abrupt halt across its sites, which included developments comprising a total of more than 500 apartments.
Speculation over the financial stability of GCB Constructions—listed as a category 6 builder with an annual allowable maximum revenue ranging up to $240 million—had been rife for months.
The besieged builder had been fighting a number of court actions.
At the first meeting of creditors to the company yesterday, it was revealed any potential return on outstanding debt would hinge on the outcome of two legal cases involving claims totalling $17 million by GCB Constructions against developers.
It is understood the builder is seeking $5 million from GDI Group, the developer of the Drift Residences tower at Main Beach, and $12 million from Chinese-backed developer Poly Global over its 243-unit and townhouse development at Ascot in Brisbane.
Creditors were told a deed of company arrangement (DOCA) was planned to be proposed.
It was likely to focus on the transition of non-terminated projects to a new builder, injection of third party funds, sale of company assets and collection of outstanding progress claims/retentions where possible and the two legal battles.
A second creditors meeting is to be held on August 30.
Article source: Queensland Property Investor
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