Condev owners defend ‘exit strategy’ after liquidation

After lamenting the “cruel demise” of their construction company Condev, which was forced into liquidation amid escalating costs and the pandemic, owners Steve and Tracy Marais will move into a $3 million apartment.

THE construction industry is doing it tough, as companies fight rising interest rates and escalating building costs.

Many are going broke, and insolvency experts are working overtime to sort out the affairs of those who have gone under.

Just ask Steve and Tracy Marais, who tearfully told the world in March that their company Condev had been forced into liquidation, after being unable to meet escalating costs, payment deadlines and troubles associated with Covid-19.

It was excruciating, even more so for the scores of subbies that don’t know if they will be paid what they’re owed, and liquidators now say the dividend could take years.

However, it hasn’t all been bad news for the Marais’ and a former senior employee.

Condev owners Steve and Tracy Marais. Picture: Tertius Pickard.

The couple and the senior employee will take possession of two units in the luxury Natura development at Burleigh, the very project that contributed significantly to the company’s collapse.

The Marais paid $1.84 million for a fifth floor unit in 2020, and property experts say it’s now worth close to $3 million.

The employee paid a similar figure for a third floor unit, both luxury properties with panoramic views of the world famous beach.

The marketing blurb from the Spyre Group says Natura is situated on the Burleigh esplanade and is “the epitome of coastal sophistication’’.

It comprises just 33 residences over 17-storeys, with all residences boasting three bedrooms, each with uninterrupted coastal views.

Residents have an array of amenities, including indoor and outdoor pools, a dining area and even a reflexology pool.

There’s also a wellness space for peace of mind and the odd bit of yoga. Some disgruntled subbies are not happy.

Condev got into trouble after a series of cost blowouts, with estimations from the Marais’ of a 25 per cent escalation in prices and supply chain issues over the past 18 months. It had 100 employees.

It had asked its clients for up to $25 million to continue operating, but when that did not eventuate, it went into liquidation.

Liquidators subsequently revealed a $12 million shortfall in assets, with debts of $45 million and assets of $33 million.

The company’s debts are to mostly unsecured creditors such as subcontractors, lenders and employees.

Condev went into liquidation with debts of $45 million. Picture: NIGEL HALLETT

Forensic accountant Jason Bettles, of liquidators Worrells, said it could take years before creditors linked to the company’s 13 building projects are paid.

In a statement, Tracy Marais said: “The contract to purchase an apartment was signed for $1.84m in 2020, shortly after Covid was detected in Australia and almost two years before Covid killed Condev in March, 2022.

“It was a decision made over two years ago as part of my retirement planning. I am 63 after all and we’re all entitled to downsize from a family home.

“Our house went to auction in May as a result of the Condev crash, and of course the liquidators took all of Steve’s share leaving me with enough from our house proceeds and my pension to buy a home.

“We spent 21 years in our first home and 21 years in our second home and I’m planning this to be my home for the next 20 years or more.

“Everyone should manage their exit strategy so that it does not manage them.

“Money isn’t our driver; family first. Condev was a family for so many years and we cherish that and lament the cruel circumstances that led to the company’s demise.’’

Originally published as Condev owners defend ‘exit strategy’ after liquidation