Kilburn builder Cubic Homes Construction goes under with 13 unfinished homes, follows Cubic Homes into liquidation
The latest SA home building business to go under — months after an associated building business at the same address collapsed — owes creditors about $500,000 and has 13 unfinished homes.
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At least two home building businesses based out of the same address in Kilburn have gone bust within months — leading to calls to “clean up the industry”.
Kilburn-based residential builder Cubic Homes Construction has been placed in liquidation by its sole director and shareholder Anthony Giorgi.
Duncanpowell’s Nick Gyss, who has been appointed liquidator, told The Advertiser Cubic Homes Construction’s “affairs are being investigated”.
“The company had ceased trading prior to our appointment with 13 incomplete residential building contracts.
“Based on our investigations the company has outstanding creditors of $500,000.”
Mr Gyss also confirmed Cubic Homes Construction “was associated” with Cubic Homes Pty Ltd which went bust earlier this year.
The Queensland Supreme Court took action in April to wind up Cubic Homes, which was also registered at the same address on Churchill Road.
Mohammad Mustafa Salimey was listed as director at the time of liquidation of Cubic Homes while Mr Giorgi is a former director of that company.
Mr Salimey is a former director of Cubic Homes Construction.
Master Builders Association of SA chief executive Ian Markos said both Cubic Homes and Cubic Homes Construction owed a number of members money.
“The devastating impact on subcontractors, suppliers and home buyers is completely unacceptable.
“Tightening licensing will help clean up the industry and we are working with Consumer and Business Services to do exactly that.
“The Cubic Homes experience also shows why it is so important to do your research before engaging a builder.”
Failed builder Coast to Coast Homes — which owes $5 million — is now being investigated by the state’s consumer watchdog, Consumer and Business Services.
The home building industry in South Australia is reeling from the impact of nine builders going bust since November.
Earlier this week, The Advertiser reported Adelaide-based CV Constructions, trading as Emerald Custom Homes, has been placed in liquidation owing at least $1.3 million to dozens of creditors, and leaving eight homes unfinished.
A contractor, who did not wish to be named, told The Advertiser “it is an epidemic”.
“We are a family-owned business with 7 to 8 people and we have been hit by the collapse of at least four builders.
“It has cost us a lot of money.
“I am experienced enough in the industry to prepare for these things, but what about the young starters.”
Mr Giorgi, who is also listed as director of Custom Build Homes, was not contactable.
Custom Build Homes was registered as a proprietary company in April this year to a Currie Street address.