Bensons Property Group administration ends after creditors accept Jreissati plan

The immediate future of flailing developer Bensons Property Group has been sealed, with its wealthy founding family set to clear a some of its $813m debts. Read why

Struggling developer Bensons Property Group is out of back in the hands of its directors after a deal with creditors over its $813m of debt was sealed.

The company’s wealthy founding family agreed to fund a Deed of Company Arrangement (DOCA), which will see $414m paid to creditors to avoid liquidation.

Under the deal, creditors will be paid $414m, compared to receiving no guaranteed return in a liquidation.

The group went into voluntary administration on December 27, and receivers were appointed on January 10 on behalf of secured lender Perpetual Corporate Trust.

Sebastian Hams of KordaMentha was appointed deed adminisatrator late on Monday.

Among those owed money is the Gold Coast’s Home of The Arts (HOTA), which is listed as an unsecured creditor for $125,000.

In 2022, founder Elias Jreissati pledged $1m to HOTA and one of the art hub’s galleries was named in honour of his family.

He is understood to have paid $125,000 of the $1m pledged, with the debt comprising the next $125,000 annual instalment.

Elias Jreissati and wife Colleen at the HOTA gallery in 2022. Picture: Glenn Hampson

Experience Gold Coast Head of Arts and Culture Yarmila Alfonzetti would not say whether HOTA voted in favour of the DOCA and did not answer questions about the impact of the shortfall on the gallery’s bottom line.

“Private philanthropic investment into the arts is an essential building block in achieving the level of funding required for the ambitious cultural projects that Experience Gold Coast and the City of Gold Coast aspire to deliver,” she said.

“We are incredibly grateful to Elias and Colleen Jreissati for championing our gallery, and for being part of the inaugural group of benefactors who believed that the Gold Coast can and should have a first-class art gallery of international standing.”

Artist impression of Chevron One tower, which was due for completion this year. Picture: Bensons Property Group

Melbourne-based Bensons is currently developing nine projects worth $1bn, including the $485m, 41-storey Chevron One at Surfers Paradise, which it owns, and where Mr Jreissati had reserved the penthouse for himself and wife Colleen.

Work on the projects has continued during the administration.

In a statement published to the Bensons website, managing director Rick Curtis said the group was “deeply humbled by the immense trust and support of our employees, trade creditors,

project partners and investors throughout this challenging time”.

“We recognise the opportunity we have been given, and we are determined to deliver for those

who have placed their trust in us,” he said.

“Bensons Property Group remains committed to our $1.5bn project development pipeline,

which will bring over 1000 new homes to the market.”

Originally published as Bensons Property Group administration ends after creditors accept Jreissati plan