Another major Australian property developer has entered administration, citing difficult conditions in the country’s ailing construction sector.
Cameron Micallef 3 min read December 28, 2024 - 3:13PM NewsWire
Major Australian developer Bensons Property Group has entered voluntary administration, but says it will not impact any of the company’s current projects.
The company has cited tough conditions in the construction sector has seen them go bust, including higher interest rates and increasing construction costs.
Craig Shepard and Sebastian Ham of Korda Mentha have been appointed as voluntary administrators, with Keith Crawford and Matthew Caddy of McGrath Nicol to oversee the ongoing operation of the company as receivers and managers.
A statement from the company said under a proposal to be put to BPG’s creditors, it was intended the company would continue to trade during and beyond the administration and receivership period.
“This will ensure BPG’s employees, trade creditors and people who have purchased apartments are protected, and its $1.5 billion project development pipeline will be delivered, which means over 1000 new Australian homes,” the statement read.
“This appointment only relates to BPG and does not extent to any other entity within the broader group.
“Importantly, all projects currently being managed by BPG – many of which are already under construction – are not affected.
“The property development sector continues to go through an extremely difficult time, particularly post-Covid.
“We believe this process provides BPG with the best opportunity to get through this period and come back stronger, with more Australian homes built in the years ahead.”
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