More than 90 homes at flagship Port Adelaide developments caught up in Qattro failure

More than 90 buyers across the Dock One and Fletcher’s Slip projects at Port Adelaide are caught up in the Qattro collapse – but hope is on the horizon.

More than 90 aspiring homeowners who bought into the Dock One and Fletcher’s Slip projects at Port Adelaide have been caught up in the collapse of Adelaide builder Qattro, but there is hope on the horizon.

The Dock One and Fletcher’s Slip projects were first flagged by the state government’s development arm Renewal SA back in about 2016, and the right to develop them was awarded to then-Starfish Developments, now known as Kite Projects, and sharemarket-listed Cedar Woods.

Kite was awarded Dock One, while Cedar Woods has been developing Fletcher’s Slip.

Qattro was working across both sites, albeit not all projects on each site, with sources telling The Advertiser that works at the Qattro construction sites have been sporadic over at least the past year.

Qattro’s liquidator, Chris Powell from DuncanPowell, said on Thursday talks were underway with other construction companies and the affected developers on a way forward, with the aim that owners would not be left out of pocket.

A Qattro site in Jenkins St, Semaphore. Picture: Ben Clark

Kite Projects managing director Damon Nagel backed this sentiment, saying he had been in talks with his company’s preferred builders and he was “very, very comfortable, almost 100 per cent positive” that buyers will not be slugged with additional costs.

There are 46 affected sites at each of both Dock One and Fletcher’s Slip, with Mr Powell saying 46 were affected at Dock One and Cedar Woods telling the ASX that 11 sites in stage 1B of Fletcher’s Slip, which were close to completion were affected.

Another 35 two storey townhouses in Stage 2A of Fletcher’s Slip “where buyers have already settled on a contract with Cedar Woods to purchase land and have entered into a separate contract with Qattro for construction of their homes’’ were affected.

“The land subdivision work has been completed by Cedar Woods and Qattro has commenced construction on these homes for the buyers’’.

Affected purchasers whose projects run over budget as a result of the Qattro collapse can claim up to $150,000 in builders’ indemnity insurance.

Mr Powell told The Advertiser that the developers had already begun discussions with a number of interested parties to take over completion of the outstanding projects and the hope was that buyers would not incur much if anything in the way of extra costs.

“I know that (the developers) are actively trying to find alternatives … and we are speaking with various parties who have expressed an interest in having a look at where there is an opportunity,’’ Mr Powell said.

“The reality is that in most building company collapses, and this will be no different, the buildings eventually do get completed.

“In this case, all properties that had to be insured were.

“There’s been delays obviously on a number of the projects that Qattro has been engaged in … but these things will get completed, and hopefully the owners at the end of the day won’t be too much out of pocket.’’

Mr Powell said delays naturally had a cost impact on buyers, with both the Dock One and Fletcher’s Slip projects understood to be quite overdue.

Mr Nagel said the Dock One builds were between three and nine months overdue at this point. Mr Nagel said it had been difficult in recent months as Qattro’s efforts had slowed, however his company had contacted all of the affected buyers and was committed to keeping them informed through the rest of the build process.

“Everybody’s had a letter, a phone call and an opportunity to come into the office and ask questions,’’ Mr Nagel said.

“We are part of that community down there. We have the ability to help and that’s what we’re doing.’’

Mr Powell said it appeared at this stage that employees’ entitlements and pay were up to date.

Qattro collapsed earlier this week owing $4.5m to mainly trade creditors.

Mr Powell said this number was expected to rise as his investigations continued and new claims came in.

Qattro managing director Bradley Jansen. Picture: Keryn Stevens

In all, about 200 homes currently under construction, worth more than $110m in total, have been affected by the collapse of Qattro, which was placed in liquidation this week.

Smaller developments at Underdale, Torrens Park and Lightsview are also affected.

Sole director Bradley Jansen released a statement on Tuesday saying that despite his team’s best efforts, the company had been placed in liquidation.

Mr Jansen said it was a difficult decision, and they had fought hard in the face of large cost increases.

“I am devastated to make this decision after three exceedingly difficult years of efforts trying to recover the post-Covid financial sustainability of the company,’’ he said in a statement.

“I know the closure of the business will have a significant impact on its many long-term employees, clients, contractors and various local sporting clubs and charities that Qattro has strongly supported over the last 15 years … for this I apologise.

“I have made significant changes to the company in the post-Covid years, such as downsizing both operations and our offices, but I have exhausted all options.

“The reality is ongoing supply-chain and labour shortages mean that there is too much cash stuck on near-completed projects to meet the immediate obligations of the company.

“New projects secured are profitable, however the existing projects with underwater fixed price contracts are still weighing too heavily on the ability to get to the other side.

“The reality is that selling something under contract for $1.00 that costs $1.20 to produce can only go on for so long. Unfortunately, the industry has watched this unfold over the past three years and continues to, without knowing when it will subside.’’

Affected homebuyers should contact DuncanPowell on [phone].