Probuild’s 443 Queen St project’s financial quagmire deepens

The financial quagmire at Probuild’s partially complete 443 Queen St project just gets worse with costs expected to blow out even further.

The 443 Queen St project is 80 per cent completed. Picture: NCA NewsWire / Dan Peled

The financial quagmire at Probuild’s partially complete 443 Queen St project just gets worse with costs expected to blow out even further.

We hear developer Cbus Property is preparing to bring in new builders for the project, which is about 80 per cent complete but two years behind schedule.

Hutchinson Builders chairman Scott Hutchinson says that even though there is only 20 per cent of the building to be completed it is expected to cost 40 per cent of the project’s total costs to finish.

“It is often the way with these projects,” says Hutchinson. “The big issue is who is going to pay for the clean up.” Hutchinson says Hutchies is interested in taking over some of the completion work on the project but has not made a final decision.

The Queen St project had been a nightmare for Probuild from the start, with losses reportedly topping $100m amid problems with the foundations.

The 443 Queen St project.

There is better news for Probuild’s projects in the southern states. Construction has restarted on two major sites in Melbourne after NSW construction firm Roberts Co reached agreement with administrators Deloitte to purchase most of the failed firm’s Victorian assets.

Deloitte has said it was unlikely that all of Probuild’s 19 projects around Australia would be restarted under the administration,with some developers choosing to “go their own way.”

This week workers and sub contractors have returned to CSL’s 16--storey headquarters site in the Melbourne CBD being developed by PDG Corporation which was due to be completed Probuild this year.

Workers have also returned to the Woodlink developed 15-level luxury hotel project at 502 Albert St in East Melbourne, due to be completed in 2023. Both projects are on Roberts Co books to purchase.

SUCCESS STORY

It must rank as one of Queensland’s best business success stories. Battery World, which began with a single store in Townsville on March 17, 1997, now has 111 stores around the country with plans to expand that to more than 200 over the next few years.

Battery World general manager Johnny Kennedy tells your diarist that the company’s 25th anniversary was a time to reflect on its achievements over the past quarter of a century.

“In our first year, we sold a total of 26,000 batteries,” says Kennedy. “Last year, we sold 2.4 million.” Kennedy says Battery World was launched by the company’s parent company Carole Park-based Century Yuasa to fill a void in the market for a specialist battery retailer.

Battery World has since expanded into roadside service with a fleet of 200 vehicles across the country, with plans roll out mobile retail outlets this year.

“We still see huge opportunities in the roadside business,” says Kennedy. “We are seeing 30 per cent year-on-year growth in that area.” He added the Covid-19 pandemic had fuelled a huge jump in demand as cars were not driven as much resulting in flat batteries.

Battery World Tweed Heads owner Matt Moore doing a road side service.

DOWN ON THE FARM

With war in Ukraine pushing wheat prices and other food commodities to multi-year highs, maybe it is time to look at more agricultural investments.

AAM Investments boss Garry Edwards was guest speaker at HLB Judd’s annual economic briefing in Brisbane this week with the focus on agribusiness.

Edwards, whose firm has more than $650 million invested in beef cattle, lamb and wool, cropping, poultry, and sustainably-sourced timber, asked the 120 well-heeled attendees how many had investments in agriculture. Only four people put their hands.

Edwards explains that sustainable agriculture is one of Australia’s most valuable assets, with technology enabling sustainable practices, which can recycle and reuse waste products to produce high yield assets. AAM for example has the largest electrical battery plant outside of the grid in Australia.

Retiring QIC chief executive Damien Frawley was another guest speaker at the event talking about this tenure at the Queensland investment giant.

City Beat spies tell us Frawley will soon be swapping the city for the country and the suit for the RMs as he focuses on his investment in agriculture and livestock.

Garry Edwards.

Originally published as Probuild’s 443 Queen St project’s financial quagmire deepens