Major NSW luxury apartment builder EQ Constructions collapses owing up to $50m

There’s no relief in sight for the construction industry with a company in the luxury apartment space going under leaving 40 jobs and various projects at risk.

A major apartment developer in NSW has collapsed owing at least $40 to $50 million with the construction industry continuing to be impacted by a crisis that began playing out last year.

EQ Constructions – which was responsible for a number of large projects including high rise apartments and luxury apartment blocks – went into administration earlier this month.

Shumit Banerjee from Westburn Advisory has been appointed to handle the administration and told news.com.au that there are between 400 to 500 creditors owed money, while there are also current projects in various states of completion.

“There are ongoing projects and these are at different stages – some are at defect liability period and some halfway through, so it’s a mixed bag,” he said.

“There’s quite a major project in Bowral, there’s a large apartment block in Parramatta and the rest are scattered throughout NSW.

“The director is looking to restructure the company and offer a deed of company arrangement and no staff have been laid off – there are approximately 40-odd staff.”

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There are projects in Bowral, Parramatta and NSW in various stages. Picture: iStock

The company, which had been in operation for more than five years, had been impacted by “historical” factors, Mr Banerjee said.

“Based on what I know, there a lot is historical events where they haven’t recovered from the impacts of Covid, incremental weather and the shutdown during Covid had an impact on their revenue stream, so that is a large portion of the issues,” he said.

“We are trying to work extremely hard to ensure that everyone keeps their job and employees receive the highest possible return.”

EQ Constructions’ website and Facebook account currently appear to be unavailable.

Back in 2018 the company, which is also known as EQ Projects, reportedly won the rights to build a $600 million residential development in Sydney’s inner city suburb of Zetland to construct hundreds of apartments.

Historical factors had impacted the company, according to the administrator. Picture: iStock

It’s the second construction company to collapse this month after awarding winning residential building company Delco Building Group in Victoria went under owing $780,000 to 50 creditors.

It also emerged in January that two more construction companies in Western Australia went under due to labour shortages and increasing construction costs.

The Australian building industry was plunged into turmoil in 2022 with a spate of collapses across the country.

Last year, a number of large firms entered into insolvency over the past year including Probuild, Condev Construction, Pivotal Homes, Waterford Homes, Privium, Home Innovation Builders and Norris Construction Group.

It was caused by a perfect storm of supply chain disruptions, skilled labour shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Originally published as Major NSW luxury apartment builder EQ Constructions collapses owing up to $50m