The nationwide crisis of failing construction companies has claimed one of its biggest victims after apartment builder Bensons Property Group was placed into voluntary administration late on Friday, threatening to derail a development pipeline of more than 1300 homes across $1.5bn of property projects.
The demise of Bensons, a well-known builder for 30 years, will cast a new cloud over the sickly home construction sector that has witnessed a string of collapses in the last two years.
At a board meeting on Friday, Bensons appointed Craig Shepard and Sebastian Hams of Korda Mentha as voluntary administrators, while Keith Crawford and Matthew Caddy of McGrath Nicol have been appointed as receivers and managers to oversee the ongoing operation of the melbourne-based apartment builder. It is intended that Bensons will continue to trade during and beyond the administration and receivership period.
Founded by Lebanese immigrant, philanthropist and art collector Elias Jreissati in 1994, Bensons is currently working on 1337 homes – all apartments – across Tasmania, Victoria and Queensland. Of these homes some are still under construction, others have been completed and are being sold and a portion have planning approval but are…