Cashed up Hutchies will withstand $22m hit from developer collapse
Cashed-up building giant Hutchies says it can withstand a $22m hit from the collapse of the development company behind a $500m project on the Gold Coast.
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The collapse of the development company behind a $500m project on the Gold Coast has hit some of Queensland’s biggest construction companies including Hutchinson Builders.
But Hutchinson boss Scott Hutchinson says the winding up of Nerang Street Pty Ltd, which was developing the Queen Street Village at Southport, will not have a material impact on the state’s biggest builder despite being owed about $22m from the project.
Hutchinson (illustrated) tells City Beat that Hutchies’ is a secured creditor and hopes to get some of the money back, but even if that doesn’t happen the company remains rock solid financially. He says the Hutchinson paid out $260m to suppliers and tradies a week ahead of schedule recently, underscoring the strength of its balance sheet.
Nerang Street was wound up after a meeting of creditors last week with William Robson, of Robson Cotter Insolvency Group, appointed liquidator.
According to a report lodged with ASIC, four secured creditors are owed a combined $65.5m while unsecured creditors are owed $40.8m. Nerang St, which has realisable assets of about $23.5m, was hit by funding problems as well as the impact of the pandemic.
The first stage of the village recently opened featuring a Supa IGA supermarket, Dendy Cinemas and specialist retailers. Further developments include two residential apartment towers and a retirement village. Colliers has called for expressions of interest in the parcels of land located at the corner of Nerang St, and Queen St with preliminary approval in place.
Meanwhile, Scott Hutchinson has hit the ground running after his return from the famous Burning Man festival in the Nevada desert, an event far removed from the hurly-burly of the construction industry.
“It was great to get back to Burning Man after a couple of year’s break,” says Hutchinson.
“There is a no money at the event and everyone just helps each other out.”
Century Innings
Congratulations to Brisbane’s Gloria Bowes who would have been one of the last centenarians to receive a congratulatory letter from the Queen.
Gloria turned 100 on September 22 and received her letter from the Queen only two weeks before our longest serving monarch passed away aged 96. Gloria, who is the grandmother of Apollo Property Group boss Leon Bowes, was guest of honour at a family gathering on the weekend where her seven children, 18 grandchildren and 25 great grandchildren celebrated her life. Her son John Bowes attributes his mother’s long life to “lots of love.”
Like the late Queen, Gloria served in World War II - as a signal operator for the RAAF. After the war she married Patrick (Paddy) Bowes a local plumber and they had seven children, of which three became plumbers, two joined the public service and two were teachers including Leon’s father John. “Mum also is a very accomplished artist and pianist,” John tells City Beat. John, who as well as being a teacher is one of the country’s top rowing coaches, says his mother is in good health and lives with one of his brothers.
As well as the letter from the Queen, Gloria also received congratulations from the Pope, Premier and Governor General.
Country Boy
Veteran BDO accountant Tony Schiffmann, who celebrated 40 years with the firm last year, is not the only financial whiz hailing from Tenterfield.
VISIS Private Wealth founding partner Chris Smith also comes from the northern NSW town made famous by Peter Allen’s hit song Tenterfield Saddler.
More than 300 guests packed out Brisbane City Hall recently to celebrate VISIS’s 21st anniversary. Although based in Brisbane, we hear Smith can’t be kept out of NSW and regularly slips across the border to meet clients. Smith has built VISIS from an idea in his Brisbane lounge room two decades ago to a business with more than 500 clients, 30 staff and almost $1 billion in private wealth under management.
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Originally published as Cashed up Hutchies will withstand $22m hit from developer collapse
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