Developers moving on after Probuild collapse

Developer Greaton is understood to have its Sydney development The Ribbon at Darling Harbour out for tender. Picture: NCA NewsWire / Jenny Evans

Probuild customers in Sydney are moving on from the troubled builder and making new appointments for construction firms to complete their projects.

Australian listed real estate developer Dexus Property is understood to have brought in Built to finish off its MLC building project, which was close to completion, while developer Greaton is understood to have its Sydney development ‘‘The Ribbon’’ out for tender.

The Ribbon is located on the site of the old Darling Harbor IMAX theatre. When completed, it will consist of a new IMAX combined with a W Hotel.

Sources say that the project requires about $200m worth of construction work before completion.

Meanwhile, after carrying out exclusive due diligence, Roberts Co will learn on Monday whether it can take control of Probuild’s Victoria operations.

ASX-listed SGR Global has bought the WBHO Infrastructure operations in Western Australia for $15.2m.

Probuild’s South African parent company, Wilson Bayly Holmes-Ovcon (WBHO), has been trying to exit the Australian market for some time.

Probuild, which had 19 projects around Australia, collapsed in February with 2300 creditors, owing 786 workers $14m, and is now being handled by voluntary administrator Deloitte. It was one of 18 businesses in that WBHO Australia Group that collapsed.

Other projects that developers have already taken back include the $300m Caulfield Village Precinct 2 North build-to-rent apartment complex in Melbourne and Ivanhoe Estate Building C1 at Macquarie Park in Sydney.

Watpac, John Holland, Webuild and Hutchinson Builders were thought to be keen to take on Probuild’s NSW and Queensland operations.

Among Probuild’s creditors are CBA, ANZ and NAB, while major insurers including Euler Hermes, AIG, Tokio, Liberty and Swiss Re are exposed through construction bonds.

Sources earlier believed some of Probuild’s most troublesome projects would have been excluded from the sale, including the Brisbane residential waterfront tower development for Cbus at 443 Queen St, the MLC project and The Ribbon.

Probuild’s collapse comes as builders struggle with rising costs for contracts locked in some time ago.

Condev construction has since collapsed and at least one other Queensland builder is said to be hanging in the balance.