Development manager of a planned $2.7bn Southbank skyscraper collapses owing over $100m

The future of Australia’s tallest mixed-use skyscraper hangs in the balance as its failed project manager owes more than $100m with payments outstanding to top designers and consultants. | SEE FULL LIST OF CREDITORS

An artist’s impression of STH BNK By Beulah.

The development management company behind the soured scheme to build Australia’s tallest mixed-use project owes more than $100m and has payments outstanding to top designers, consultants and lawyers, according to documents lodged with the corporate regulator.

The company, BSSPV Pty Ltd, collapsed into administration last Tuesday and is now in the hands of accountants Pitcher Partners, leaving the future of a planned $2.7bn complex in Melbourne’s Southbank under a cloud.

The project’s developer, Beulah International, is attempting to resuscitate the project, seeking a huge equity injection to get one of the two planned super-tall towers started.

But a report lodged by Pitcher Partners ahead of a creditors meeting on February 18 shows outstanding bills to high-profile players in the development game, including designers Cox Architecture and UNStudio, and builder Multiplex, which is no longer connected to the project, but owed about $88,000.

Beulah International is now trying to find a capital backer as the site itself is not in administration, despite the project management company of the Southbank skyscraper falling into administration.

Building was slated to begin on the STH BNK by Beulah in 2023, with the twin towers as high as 366m to loom over Melbourne’s city skyline. But it was hit by rising building costs and bad timing for residential projects, even though it had record pre-sales, including a $35m ­sub-penthouse. The report says the company owes creditors about $102.3m but many are associated entities that are part of the Beulah International empire.

The BSSPV Pty Ltd entity disclosed that it had relatively few assets, with one bank account containing $450.66, another empty and another with just 73c. According to a statement of affairs signed by Beulah International managing director Jiaheng Chan, the company claims it is owed small sums from businesses including Esse Studios, Into Carry, KARMO and Kitx Pty Ltd.

Its largest asset could be its claim to be owed close to $58m in accrued fees from an associated company that is part of Beulah International empire, SBBSN Pty Ltd, which is not in administration. However, as is common in construction companies that use inter-company structures, BSSPV Pty Ltd itself owes a similar sum – just over $56m to that entity.

More than $34m wais also owed to another company associated with Beulah International, Mayfair Global Investments.

A separate secured creditor, AIVICI Pty Ltd, acting on behalf of a family trust associated with Malaysian businessman Anthony Lee, is owed close to $12m, the report says. The report shows the development management entity has outstanding debts to a series of top end players after it ran behind in paying consultants to the project as it was hit by delays and cost blowouts.

The report lists a series of what it terms “aged payables” owed to a series of high-profile companies that worked on the project.

These include planning and engineering firm AECOM Australia, which is owed about $365,0000, and Aspect Studios, which is owed close to $56,000. Designers and consultants ARUP are owed close to $1m.

The development management entity also had outstanding bills to legal firm Baker McKenzie of more than $38,000 and to consultants KPMG which is owed about $364,000.

That firm is now working on a rescue plan for the development alongside real estate agency JLL. Other large sums owed include debts to architectural practice Cox, owed about $616,000, and UNStudio, for about $334,000.

The pair last month lodged wind-up orders against BSSPV Pty Ltd.

The development entity also owes money to cost managers and advisers WT Partnership and designers Studio Ongarato, as well as consultants Stantec Australia Pty Ltd. It also owed funds to lobbyists Spring Street Advisory.

All up, the report listed aged debtors who were owed about $5.3m at the end of January, with Beulah International’s Mr Chan also owed more than $1m.

Originally published as Development manager of a planned $2.7bn Southbank skyscraper collapses owing over $100m