Grant Thornton creates a shortlist of 15 builders to help finish Porter Davis homes

The liquidator sorting through the Porter Davis Homes collapse has whittled more than 80 submissions into a shortlist of 15 builders capable of finishing hundreds of homes. SEE THE LIST

The liquidator sifting through the collapse of Porter Davis Homes has settled on a shortlist of 15 builders who have the ability to finish hundreds of homes left in limbo.

The company, which was the 12th largest residential builder in Australia, collapsed on March 31 leaving 1500 unfinished homes in Victoria and a further 200 in Queensland.

The Melbourne-based builder had a further 779 clients who had paid deposits, but where work had not started on their projects when liquidators were appointed.

In a letter to customers late on Friday, liquidator Grant Thornton Australia said they have received more than 80 submissions from builders in Victoria and Queensland.

“We estimate that at least 15 of those builders have the scale and capability to complete a minimum volume of home builds for Porter Davis customers in each region,” they said.

The short-listed builders are: Aliya Homes, Carlyon Homes t/as Watermark Homes, Glenvill, Goldstate Homes, Granvue Homes, Langdon Building, Long Island Homes, Oreana Homes, Symmetric Homes, Verv Group, Z & Me Group (Kollins Corp), Beachwood Homes, Levonix Homes, Bold Living and McCarthy Homes.

Grant Thornton said should customers enter into agreements with any further builders in the coming days, an updated list of builders will be issued to customers.

The liquidators told customers that they were not obliged to engage any of the builders to complete their homes.

Major home builder Porter Davis has gone bust with work immediately halted on more than 1700 properties across Victoria and Queensland

Grant Thornton said there are a number of customers who it is in separate dialogue with in respect to the completion of their homes which were at, or near, handover stage.

“There is also another group of customers who are at pre-site stage where we have identified a nominated builder who is willing and capable to complete their homes and we are in direct discussions with those customers,” they said.

Grant Thornton said relevant PDH companies have issued issue notices to the majority of Porter Davis repudiating their contract with the company.

“Customers should take their own legal advice in respect of the effect of a Repudiation Notice, and the related impact on their homebuilding contract, their property and any related insurance,” the firm said.

Revive Financial head of business restructuring & insolvency Jarvis Archer said in the current market finding a replacement builder was very difficult and they often could not start work for six or 12 months. “Homeowners in this situation quickly see their dream become a nightmare as they’re stuck paying both rent and a mortgage, they need to make arrangements to have their home finished and they could be faced with insufficient finance to complete their building work,” he said.

“On top of this, there are stories emerging of homeowners having the second and even third builders go broke on them.”

This week Grant Thornton rejected an offer as not “credible” from Melbourne businessman Amit Miglani to buy Porter Davis outright.

He claimed the deal would keep all staff employed, protect homeowner deposits, and see all projects under contract completed.

Originally published as Grant Thornton creates a shortlist of 15 builders to help finish Porter Davis homes