Workers back on two Probuild’s sites as Roberts Co works on Victorian operations acquisition

Construction has restarted on two major Probuild sites Melbourne as the likely buyer for the collapsed building giant’s Victorian operations continues to work on the acquisition.

Workers leaving a Probuild construction site.

Workers have returned to finish two major projects in Melbourne abandoned by failed construction giant Probuild after a buyer emerged for the company’s Victorian assets.

Workers walked off Probuild sites around the country in February after its South African parent Wilson Bayly Holmes-Ovcon (WBHO) pulled the pin on further financial support to its troubled Australian arm.

This week NSW construction firm Roberts Co reached an in-principle agreement with administrators Deloitte to purchase most of the Victorian assets of the Probuild business.

Workers and sub contractors have returned to CSL’s 16-storey headquarters site in the Melbourne CBD being developed by PDG Corporation which was due to be completed this year.

They have also returned to the Woodlink developed 15-level luxury hotel project at 502 Albert St in East Melbourne, due to be completed in 2023.

Both projects are on Roberts Co books to purchase. The future of other Probuild projects, including the troubled 443 Queen St building in Brisbane, is less certain.

Sub-contractors and tradesmen pack up their equipment and walk off the 443 Queens Street construction site in Brisbane.

Deloitte has said it was unlikely that all of Probuild’s 19 projects around Australia would be restarted under the administration, with some developers choosing to “go their own way” to get work completed.

Deloitte restructuring and turnaround leader Sal Algeri said on Monday that the Roberts Co sale was subject to completion of due diligence over the next two weeks and would also include ongoing employment for relevant Probuild employees.

However, a quick sale, transfer of work or a resumption of work on much of Probuild’s $5bn workbook will sweeten the deal for Roberts Co. It also minimises contingent liabilities on the books of the collapsed company.

It is understood developer Cbus Property has taken control of the troubled 443 Queen St apartment tower project in the Brisbane CBD.

Dexus’ retail project at 25 Martin Place in the Sydney CBD is near completion and a spokesman said: “We are committed to seeing through the completion of the remaining development works and are working through options to this end.”

The partly built apartment tower at 443 Queen St in the Brisbane CBD.

Expectations are also high that a buyer will be found for the WBHO Infrastructure business in Western Australia.

The sale of the infrastructure business, which has 300 employees, closes on Friday and it is understood to have three or four genuine candidates interested in the business.

At Probuild’s partially complete 443 Queen St project in Brisbane, developer CBUS Property is bracing for further cost blowouts.

CBUS Property is believed to preparing to bring in new builders for the project, which is about 80 per cent complete but two years behind schedule.

Construction started on the $375m 47-storey riverfront apartment tower in 2018. The tower has 264 apartments and was scheduled to be completed by the end of 2022.

Hutchinson Builders chairman Scott Hutchinson said that even though there was only 20 per cent of the building to be completed it is expected to cost 40 per cent of the project’s total costs to finish.

“It is often the way with these projects,” said Mr Hutchinson. “The big issue is who is going to pay for the clean up.”

Mr Hutchinson said his company was interested in taking over some of the completion work on the project but has not made a final decision.

The Queen St project had been a nightmare for Probuild from the start, with losses reportedly topping $100m amid problems with the foundations. CBUS Property did not respond to a request for comment.

After Probuild collapsed it was revealed that nationally it owed its 786 workers $14m and untold amounts to more than 2300 creditors, as administrators Deloitte conceded they faced a “nightmarish” scenario in salvaging the company’s projects.

WBHO chief executive Wolfgang Neff said in hindsight they would have exited Australia operations earlier as “red flags” were raised with the business sustaining mounting losses.

“If we knew everything we know today we would have pulled the plug years ago,” he said.

Originally published as Workers back on two Probuild’s sites as Roberts Co works on Victorian operations acquisition