Debts revealed in administration of Bensons Property Group, developer of Chevron One
More than $800m is owed by a flailing developer of a mammoth Gold Coast residential tower, according to documents with ASIC. Read what it means for construction
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More than $800m is owed by the flailing developer of a mammoth Gold Coast residential tower, according to documents lodged with ASIC.
Bensons Property Group went into voluntary administration in December, with managing director and CEO Rick Curtis vowing it wouldn’t stop progress on the company’s $1.5bn in projects.
Bensons is currently developing the $485m, 41-storey Chevron One at Surfers Paradise as well as 740 apartments across Melbourne’s suburbs, which have a collective value of $452m on completion.
The developer’s last construction update for the Chevron One project was in May last year and it was initially slated for completion in late 2025.
The build is currently up to the 24th floor.
Gold Coast couple Michael and Poppy King purchased their apartment on the 23rd floor more than three years ago, hoping to spend their retirement in the Surfers Paradise enclave.
“I’m not too sure what’s going on,” Ms King, 61, said.
“My husband and I are a bit concerned, we’ve been waiting all these years – I was one of the first to buy into it.”
Ms King said the sales agent she bought the apartment from had sent a text message last week, saying the project was still on track and it was “business as usual”.
A report on the Melbourne-based company’s affairs and property, completed by founding chairman Elias Jreissati and lodged with ASIC this week, said Bensons owed more than $811m.
The debt includes $41m of “redeemable notes” owed to shareholders, as well as multiple loans to related parties and bills to trade creditors and suppliers.
According to the director’s report, Bensons also owed $173,000 in superannuation, and leave entitlements to unrelated staff, and another $1.1m to employees related to the company.
A statement from the administrator, published to the Bensons website, said work had recommenced on the three building sites after the holiday break.
The statement suggested creditors could be asked to vote on a Deed of Company Arrangement, which could enable it to avoid liquidation if approved.
“Under a proposal to be put to BPG’s creditors, it is intended that BPG will continue to trade beyond the administration and receivership period,” the statement said.
The ASIC report said $15.1m was owed to the company by Option Two, a related company with Mr Jreissati the sole shareholder.
Option Two is directed by Mr Jreissati with Mr Curtis the registered alternative director.
The report said Bensons had around $120.8m in assets, of which $90.5m were considered “realisable”.
Chevron One has been under fire from neighbours, who likened the area around its construction as “an earthquake zone”.
Once complete it will be the island’s tallest tower, and was slated to include Queensland’s “largest single unit”.
Buyers into the project were reportedly given $15,000 worth of wine from Mr Jreissati’s winery Levantine.
ASIC records show multiple companies have lodged security interests over BPG assets, including Perpetual Nominees and Manda Capital.
Ms King was still hopeful of moving into her new home.
“All I want is to sit on the balcony and look at the water views, she said.”
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Originally published as Debts revealed in administration of Bensons Property Group, developer of Chevron One
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