This article is from the Australian Property Journal archive
NEW South Wales-based builder, Southern Cross Constructions, has gone into voluntary administration.
Southern Cross joins a growing list of NSW construction companies that have gone under, including Reed Construction, St Hilliers Construction after it could not secure $150 million funding, Westminster, Cosmopolitan and Kell & Rigby, which was one of Australia’s oldest building companies after starting business in 1910.
Southern Cross Constructions has appointed administrators Cor Cordis Chartered Accountants, and owes creditors approximately $17 million. The company has more than $230 million worth of projects in NSW including a Bunnings Warehouse at Balgowlah, and an $80 million housing development at Hurstville.
The company had evaded insolvency in June this year after it merged with Victorian builder, Icon. This collapse does not affect Icon’s Victorian business.
However the signs were not good for Southern Cross earlier last week when the Construction Forestry Mining and Energy Union picketed outside its Bunnings Warehouse and Woolworths sites at Balgowah over unpaid wages.
Cor Cordis Chartered Accountants’ partner Ozem Kassem said Woolworths and Bunnings has had to step in and pay some subcontractors directly, in order to keep progressing.
Southern Cross was also working on three residential developments at Hurstville, Dee Why and Wollongong.
Kassem said it was too early to determine what had happened, adding that the administrators will focus on completing its remaining construction projects.
Kassem said the company’s directors blamed the problems facing the industry.
“But we’ll make our own assessment in due course,” he added.
Property Review
