Porter Davis’ off-the-plan townhouse business sold to Nostra Property Group

The embattled group’s multiple dwelling business has been sold to a leading Melbourne builder, with the chance to complete up to 375 homes.

A Melbourne building company has thrown a lifeline to hundreds of homeowners who have been in construction limbo since the collapse of Porter Davis Homes Group last month.

Nostra Property Group has secured a deal to buy Porter Davis Homes’ multiple dwelling business for an undisclosed sum.

The company counts some of Australia’s largest developers such as Villawood Properties, Stockland, Lendlease and Frasers Property as its customers. It primarily builds townhouses which are sold off-the-plan by developers.

Liquidator Grant Thornton Australia national managing partner – financial advisory Said Jahani said all parties worked tirelessly to achieve a positive outcome in an extremely short period of time.

“This will see a number of jobs preserved, disruption minimised for several existing and future projects, and critically up to 375 homes built for families who have had to suffer enormous stress and anxiety following the collapse of the PDH Group,” he said.

Porter Davis, which was the 12th largest residential builder in Australia, collapsed at the end of March leaving 1500 unfinished homes in Victoria and a further 200 in Queensland.

The Melbourne-based builder had a further 779 clients who had paid deposits, but where work had not started on their projects when liquidators were appointed.

Porter Davis, which was the 12th largest residential builder in Australia, collapsed at the end of March.

The deal, which was announced on Monday, will see Nostra Property complete up to 126 townhouses using the same PDH designs for various developers which are currently at different stages of construction, all of which have been pre-sold off the plan to customers.

It also means Nostra Property will be able to start the construction for up to 169 townhouses using the same PDH designs, many of which have been pre-sold to end customers off the plan.

Separately, the company will also step in to support about 80 retail customers of PDH whose homes are yet to be commenced to provide their building services.

These customers have been directly contacted by the liquidators and have been given the option to consider Nostra Property as a replacement builder.

Ongoing employment for 16 PDH team members who will be offered employment by Nostra Property.

Nostra Property managing director and founder Anthony Caruana said it was a “natural fit” for his business.

“We already work with many of the same developers and myself, along with the NPG team, are excited about working with the high caliber of people that will be joining us from the Porter Davis team,” he said.

“Together, we will work towards not only completing the existing partially built homes in this portfolio, but also those projects which are yet to commence.

“This will ensure that we can provide much needed certainty to the families who have purchased a PDH designed townhouse and they can once again look forward to having a new place to call home.”

Nostra Property Group has secured a deal to buy Porter Davis Homes’ multiple dwelling business.

Nostra Property Group was founded in 2006 and specialises in both townhouse developments and freestanding dwellings.

The company has delivered thousands of homes since their inception and is a tier one partner to many of Australia’s leading property companies, delivering joint venture projects in high quality masterplanned communities.

In addition to the 16 team members joining from the PDH Group, Nostra Property will immediately start recruiting new roles.

Last week Grant Thornton rejected an offer as not “credible” from Melbourne businessman Amit Miglani of MIG and Sons to buy Porter Davis outright.

Under the proposal, he said he would purchase the “whole business”, which included keeping all jobs, subcontractors and finishing all unbuilt projects.

Grant Thornton said Mr Miglani has not undertaken any due diligence and was unable to complete a transaction in an expedited time frame which was a key requirement of the liquidators.

In a letter to customers late on Friday, Grant Thornton said they had received more than 80 submissions from builders in Victoria and Queensland from which they created a list of 15 who had the scale and capability to complete a minimum volume of home builds for Porter Davis customers.

The short-listed was: Aliya Homes, Carlyon Homes t/as Watermark Homes, Glenvill, Goldstate Homes, Granvue Homes, Langdon Building, Long Island Homes, Oreana Homes, Symmetric Homes, Verv Group, Z & Me Group (Kollins Corp), Beachwood Homes, Levonix Homes, Bold Living and McCarthy Homes.

Grant Thornton said should customers enter into agreements with any further builders in the coming days, an updated list of builders will be issued to customers.

The liquidators told customers that they were not obliged to engage any of the builders to complete their homes.

Grant Thornton said relevant PDH companies have issued issue notices to the majority of Porter Davis repudiating their contract with the company.

“Customers should take their own legal advice in respect of the effect of a Repudiation Notice, and the related impact on their homebuilding contract, their property and any related insurance,” the firm said.