Property magnate Ross Pelligra one of several builders eyeing projects left unfinished by embattled Felmeri Group
A billionaire property developer has emerged as one of several builders running the rule over projects left in limbo following the collapse of Felmeri Group.
Property magnate Ross Pelligra’s development company has emerged as one of several builders running the rule over projects left in limbo following the collapse of Adelaide building firm Felmeri Group.
Pelligra has been in talks with Felmeri about taking over certain incomplete projects, but SA general manager Steve Wren said it would only consider projects that “suits our portfolio and suits what our skill set is”.
Mr Wren would not confirm whether Pelligra was the building company supporting Felmeri director Frank Felmeri’s last-ditch rescue plan for the business, but confirmed there was interest in supporting certain unfinished projects.
“We’re always sorry to see any builder or contractor in our industry falling upon hard times, and we’re always looking and willing to help out people wherever we can,” he said.
“In regards to this particular transaction we have been speaking to them, as I’m sure other people in the industry have, and we are looking at some of their assets.
“We focus a lot in commercial and industrial, so just because we’re talking to a residential builder about their assets you shouldn’t infer anything other than that into the conversation.
“If there’s anything that we’re able to help them out with, but that suits our portfolio and suits what our skill set is, then we would do that.”
Pelligra is primarily a developer of commercial projects – including offices, industrial, medical and recreation facilities – but it has dabbled in traditional housing projects in the past, including a multi-million dollar development at Largs North in 2017.
Mr Wren would not comment on which projects or “assets” Pelligra was potentially interested in. However it is understood the Wallaroo Shores resort project is not being considered.
“You have to be careful of what you get into, especially in this market,” Mr Wren said.
“Everybody knows that construction costs have gone up the roof and interest rates have gone up the roof. We’ve got to look at everything and make sure that we don’t overstretch ourselves, or we don’t get into stuff where it’s not going to get a return.”
Pelligra is one of several builders interested in taking over Felmeri’s unfinished projects.
Metro Homes SA director Steve Weightman said his company had submitted 16 quotes to complete projects for former Felmeri customers, but any contracts would be contingent on payouts from insurer QBE following a resolution around Mr Felmeri’s repayment proposal, known as a deed of company arrangement (DOCA).
“We’ve been talking to owners direct, we’ve done some quotes and we’ve had some acceptance of that pricing which is subject to working that through with QBE,” Mr Weightman said.
“But we think we’ll be doing a few builds for people.
“On top of that we’ve been asked to provide a quote to complete roadworks at O’Halloran Hill and we’re working that through as well.”
Mr Felmeri has until Monday to provide his DOCA proposal to administrators before a vote of creditors on July 17.
Mr Felmeri claims to have the support of a “large national building group with expertise in commercial and residential construction” that would complete most of the unfinished homes left in limbo when the company fell into administration on May 19.
If a DOCA is approved by creditors, control of the company would return to its directors. Otherwise the company could be placed into liquidation, with its assets sold off in a bid to recover funds for creditors.
Felmeri administrator Leigh Prior of Agile Business Advisory has been contacted for comment.
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