An award-winning property developer has become the latest company in the construction industry to have fallen into insolvency in recent months.
Queensland-based Property Solutions Holdings, known for developing some of Brisbane‘s most prominent urban renewal projects, went into voluntary liquidation on May 4 reportedly owing millions.
The company fell on hard times in recent years as it struggled to secure funding while also dealing with the impact of the Covid pandemic and soaring construction costs.
It had also moved away from Brisbane’s inner-city and started developing in the Yatala Enterprise Area, halfway between Brisbane and the Gold Coast.
The liquidation of Property Solutions Holdings and other connected businesses will be headed by Nick Combis, the director of insolvency and reconstruction at Vincent’s Accountants.
liquidation (pictured: the company’s ‘Centro on James’ development)” class=”blkBorder img-share” style=”max-width:100%” loading=”lazy” /> An award-winning company behind some of Brisbane’s more celebrated urban renewal projects, Property Solutions Holdings, has fallen into voluntary liquidation (pictured: the company’s ‘Centro on James’ development)
Founded in 1990, Property Solutions Holdings found their niche in successfully redeveloping large properties in Brisbane’s inner-city.
During the company’s peak output, it was involved in more than 150 projects, with four major projects all in Brisbane.
Centro on Fortitude Valley’s James Street, The Barracks on Petrie Terrace and the SW1 commercial-retail project at Melbourne St, South Brisbane are two of the projects the developer was known for.
One of the companies attached to Property Solutions, Nerang Street Pty Ltd, had attempted to build a $500million project, the Queen Street Village, on the Gold Coast that ended with the businesses owing creditors about $80million.
The company’s director, David Blanck, had his property placed on auction by Hutchinson Builders, referring to their role as financiers of the Queen St property, the liquidation-owing-millions/news-story/426be2b820b1d0af048173f09277b8fa”>Courier Mail reports.
‘The company’s financial circumstances included a change in property market valuations, inability to meet funding arrangements and prior to that the general impact of the Covid-19 pandemic,’ a report to ASIC from Nerang Street Pty Ltd reads.
According to another report from Mr Combis, numerous companies attached to Property Solutions Holdings owe the Australian Tax Office more than $2.4million.
Outside of property development, the company had also dealt in property management and investment and asset and funds management.
Property Solutions and a group of associated companies reportedly owe millions to the Australian Tax Office and other entities (pictured: the group’s ‘SW1’ development on Brisbane’s South Bank)
The group’s fall comes on the heels of Melbourne-based construction company Interface Constructions Victoria Pty Ltd – known for completing builds of schools and government buildings – filing for insolvency earlier this week.
The two companies are now the latest of a long line of construction-related businesses that have collapsed in recent months after struggling with the impact of the Covid pandemic and increased costs of materials, rising inflation and labour costs.
The cost of construction materials such as cement, pine, steel and glass rose by an average of 20 per cent over 2022.
This lead to construction companies in fixed contracts having to pay more than the amount agreed to by the client to complete the build.
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