Developer ‘blindsided’ by builder’s $1.6m collapse
THE developer of an inner-city apartment building said he was "blindsided" after the project's builder collapsed owing $1.6 million to creditors.
Brisbane-based Bulkbuild Pty Ltd went into voluntary administration on Monday leaving its only building site - the London Residences - in limbo.
However, Ferro Property Group managing director Marco Ferro, who is developing the $27 million luxury seven-storey apartment building on Bailey St, West End, said it should still be completed by late August or early September.
"We didn't get notified. We were blindsided when we were told about it last Thursday," he said.
"At that point the site was at full speed. Our project manager monitors it every day and we had no signs that this was happening.
"But as soon as we found out we terminated the contract, secured the property and hired BulkBuild's key construction staff and admin.
"We've been building and developing since for a long time and this isn't our first rodeo."
Morton + Lee Insolvency director Leon Lee is handling the voluntary administration and said he will meet with creditors.
According to Bulkbuild's website the privately-owned company is based in Mansfield in Brisbane's south and its work covered the industrial, commercial and residential sectors.
Sole director and chairman of the company Digen Hur did not return phone calls.
Mr Ferro said his company was in negotiations with a builder to complete the project which has 19 of its 24 apartments sold, all to owner-occupiers.
"This will probably set us back for a few weeks," he said.
"The purchasers have all been notified and they are very supportive. They understand that these things happen especially in the world we are in at the moment."
Originally published as Developer 'blindsided' by Brisbane builder's $1.6m collapse