Groupline Constructions appointed builder for tower one of BuildCap’s $97m Marine Quarter at Southport
A new builder has been appointed to the $97m Marine Quarter development, four months after it was left in limbo by the collapse of GCB Constructions. But not all apartments buyers are happy with the announcement.
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A new builder has been appointed to the $97m Marine Quarter development, four months after it was left in limbo by the collapse of GCB Constructions.
Gold Coast builder Groupline Constructions will complete the first of two towers in the 260-apartment project next to Broadwater Parklands at Southport.
Buyers have been told the first tower, originally due to be completed in May, was now scheduled for completion by the end of 2023.
The first tower, Oceanic, was close to topping out when GCB went into voluntary administration on July 24, a day after the QBCC cancelled its licence over a failure to pay debts.
While news of the new builder is likely a relief to buyers in the first tower, those who have bought units in the second tower, Scenic, are frustrated with a lack of communication from the developer, Buildcap, taking their concerns to the project’s Facebook page.
“Given we seem to hear more from the GC Bulletin, I think all buyers deserve regular more tangible updates that speak a little more to the impact on our key contracted terms and conditions,” wrote Liz Connelly, who’s purchased a unit in the second tower.
“As we the buyer seem to be the last to find out what is going on I am very interested to see if the developer build cap are going to ask for more money,” wrote Desiree Scantlebury.
“I have just received update about Groupline appointed to complete Oceanic tower. Really!!
“Where is the commentary regarding Scenic tower!! This update adds salt into an already tender wound,” wrote Paul Butler.
Responding to the concerns, a post from Buildcap said they understood the “disappointment”.
“Whilst the first priority was appointing Groupline to recommence construction of the Oceanic Tower as soon as possible, we assure you the BuildCap team has been driving the planning for the Scenic Tower with urgency,” it said.
“Now that the Oceanic Tower contract is in place, BuildCap is able to advise that the Scenic Tower is expected to commence in the first quarter of 2024. An email to purchasers will be sent as soon as significant details are confirmed.”
Marine Quarter was GCB’s largest ever project.
In his most recent report to creditors, GCB administrator David Stimpson said the builder’s financial records showed Buildcap owed it $6.9m.
Buildcap terminated its contract with GCB on August 17 and immediately cashed NAB bank guarantees totalling $2.175m, the administrator said.
Victorian lender RMBL Investments holds a mortgage over the Marine Quarter property, while a company related to GCB hold a 20 per cent stake in the development.
Developers of GCB projects along the coast claim the administration will cause them losses of $57m, and the administrator has recommended liquidation as “the only viable option” for the building company.
Creditors will vote on the recommendation at a meeting which is yet to be scheduled.
Arundel-based Groupline is directed by David Widdicombe and holds a category four builder licence for maximum revenue to $60m a year.
The QBCC has no record of any insured residential work under the licence, which was granted in 2018.
Groupline stepped in to complete Spyre Group’s Natura project at Burleigh Heads after the collapse of Condev.
In 2019 it was suspended by the QBCC and forced to stop work on a $10m beachside apartment tower at Kirra after deep cracks emerged in the walls of a neighbouring unit block.
The licence was reinstated after five days and no disciplinary action was recorded.
Groupline launched legal action and had its licence conditions overturned, with the QBCC ordered to pay legal costs.
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