Gold Coast Bluestone collapse: Embattled businessman Larry Matthews promises tradies will be paid after $6.8m project debt

EMBATTLED developer Larry Matthews has made a vow to subbies left more than $6.8 million out of pocket on a project developed by his son’s company.

Developer Larry Matthews in 2006 outside the revamped building that was the old Mermaid Cinema. Pic Glenn Hampson

EMBATTLED developer Larry Matthews has vowed to pay back Gold Coast subbies owed more than $6.8 million on a project developed by his son’s company.

Breaking his silence after the collapse of Bluestone Constructions Pty Ltd, Mr Matthews said: “It is my intention to pay creditors, this will come from the sale and settlement of assets within the Matthews Property Group”.

Bluestone’s Waterford North and South project involved 255 units in a 4-stage development with 68 units built and completed in the first stage and the remaining 187 units later.

“Unfortunately various issues caused delays to construction and with the necessity to complete stages two, three and four in a single stage, costs escalated,” Mr Matthews said.

EARLIER: FORMER BANRUPT DEVELOPER ‘CALLING THE SHOTS’

“The main focus of all concerned was the necessity to complete the project, which despite the escalation in costs occurred November 2016.”

The project was finished with “the help of the financier” and “increased equity contributions by the developer”.

Artist impressions of Waterford Apartments at Bundall — the project is now completed.

The Bulletin yesterday revealed the developer, who previously faced insolvency issues, was a “permanently excluded individual” by the Queensland construction industry watchdog after filing for bankruptcy in 2012.

Emails show Mr Matthews’ company, Matthews Property Group, made the call on which subbies got paid after senior managers said he “personally contributed funds” to help a financially troubled Bundall project developed by his son’s Bluestone Constructions Pty Ltd.

John Rooney pictured in front of his apartment being built in the Waterford apartments complex under construction in Bundall in 2014. The project is now complete. Picture Mike Batterham

“Of the 255 units built and completed, 37 remain to be settled with a number of units contracted and set aside to satisfy outstanding creditors,” Mr Matthews said.

“In the interests of the outstanding creditors and remaining purchasers, it is absolutely imperative that they understand the project has been finished unlike some other projects where the project was abandoned incomplete.”

After lobbying from subbies working on the Bundall project, Housing Minister Mick de Brenni will consider further reforms relating to ex-bankrupt developers becoming involved in major construction jobs.