This article is from the Australian Property Journal archive
HIGH-rise and luxury apartments developer EQ Constructions is among the first builders to collapse this year, owing at least $40 million to $50 million, following a tumultuous 2022 for the industry that saw a number of major developers go under.
Shumit Banerjee from Westburn Advisory has been appointed to handle the administration and told news.com.au that between 400 to 500 creditors are owed money, while multiple projects are in various states of completion.
“There are ongoing projects and these are at different stages – some are at defect liability period and some halfway through, so it’s a mixed bag,” he told news.com.au.
“There’s quite a major project in Bowral, there’s a large apartment block in Parramatta and the rest are scattered throughout NSW.”
Impacts of COVID and bad weather have had an impact on the company’s revenue stream.
The director is looking to restructure the company and offer a deed of company arrangement and none of the circa 40 staff have been laid off.
EQ Constructions recently completed 76 apartments within Aoyuan International’s Lennox development near the Parramatta River that will set aside for rent by essential workers.
Also known as EQ Projects, in 2018 it reportedly won the rights to construct hundreds of apartments within a $600 million project in inner Sydney’s Zetland.
This year, Delco Building Group in Victoria has collapsed owing $780,000 to 50 creditors, while WA Housing Group and Individual Developments WA have also gone under.
The collapse of Elderton Homes capped off a tough year for the construction industry, which was smashed by rising material costs, supply chain issues and labour shortages. Major casualties included such as ProBuild, multibillion-dollar developer Caydon Property Group, and Queensland builder Condev, leaving billions of projects across the country in limbo.
