Roberts Co tips building empire into administration as founder Andrew Roberts exits

Big contractors are poised to pick up key jobs in Victoria where work had stalled on major sites as collapsed Roberts Co debts soared over $50m.

Vaughan Strawbridge and Joseph Hansell of FTI Consulting have been tapped as voluntary administrators of the head Roberts Co company,

Tycoon Andrew Roberts is closer to exiting the construction industry as the head company of his Roberts Co building empire went into administration and big contractors are poised to pick up key jobs in Victoria where work had stopped.

Vaughan Strawbridge and Joseph Hansell of FTI Consulting have been tapped as voluntary administrators of the head company, RCAH Pty Limited, but they are yet to report how much it owes, partly while problems in the southern state are worked out.

The Victorian business fell into the arms of administrators McGrathNicol in March owing subcontractors about $50m and industry players have been surprised by the delays in getting the company’s four main projects restarted.

Now, Asian warehouse heavyweight ESR is in the throes of appointing Multiplex to complete works at the massive Amazon robotics fulfilment centre at the Australian Super owned Craigieburn Logistics Estate.

The complex will span about 209,000sq m across four levels, making it the largest warehouse ever built in Australia but the parties are yet to confirm the move.

The Amazon facility in Craigieburn. Picture: Jake Nowakowski

Investa and Oxford Properties Group, which had already topped out Indi Footscray, their first build-to-rent project in Melbourne, are believed to have tapped Icon to finish off works. Indi Footscray will comprise 702 apartments next to the local train station.

Investa is running a process that has selected a preferred builder but declined to identify the builder.

Another major project, where Roberts Co was to deliver a clinical-scale mRNA manufacturing facility at La Trobe University’s Melbourne campus will likely be picked up by Built Environs, though that company is yet to comment.

The impending transfers which will see works restart and subcontractors paid ahead of coming back on site, as they have been on the Footscray job.

Apartment developer Golden Age Group has already restarted construction at its Melbourne CBD project, 130 Little Collins Street. That private developer kept the existing site management team and is working closely with key subcontractors to finish the project by August.

In a staggered exit from the industry which was the bedrock of the family fortune, Mr Roberts’ company managed to find a buyer for the NSW operations in growing UAE development company Arada.

Roberts Co effectively went into “safe harbour” at the head company level as it fought to secure the value of the specialist building platform that was built up over the last eight years.

It sold Roberts Co (NSW) Pty Ltd, its NSW business, to Arada for a nominal sum. This salvaged the value in the company, as the state division is completing a number of major projects.

These include the Paediatric Services Building of the Children’s Hospital at Sydney’s Westmead, Carlingford West Public School and Cumberland High School, and the Home Parramatta build-to-rent tower.

Although the Victorian operations weighed heavily as they were hit with cost blow outs on its major building jobs in Melbourne, these problems were quarantined.

Mr Roberts had set up the construction company as a tier one operator but it was hit by harsh industry conditions and heavy losses in Victoria. Now, the operations of the head entity, RCAH Group, have been wound down.

In a statement, the FTI pair said: “We will investigate the financial position of the Companies, which will include the recent sale of businesses and interest with a view to reporting to creditors on the options available for the future of the companies.”

“We are aware there is interest from stakeholders of the business to propose a deed of company arrangement with the view of providing a better return to creditors in a timely manner, which will be considered in due course,” they said.

Mr Roberts’ fortune was estimated at $896m this year, but he has privately vowed to stay clear of the volatile industry which has seen top builders hit with heavy losses.