Montpelier House luxury apartment complex expected to be built despite developer collapse

A ritzy residential project slated for Hobart is still expected to be built even after the firm behind the development entered voluntary administration.

Artist’s impression of the Montpelier House development. Picture: Fender Katsalidis

Construction of a luxury apartment development at Battery Point is expected to begin within the next six months, despite the collapse of the billion-dollar homebuilding firm behind the project.

The administrators appointed to chart a course forward for Bensons Property Group, which entered voluntary administration in late December, have assured creditors that the company’s $1.5bn pipeline of works will be finished.

Founded by Elias Jreissati in 1994, the Victorian-based business is known for the high-rise apartment tower, Chevron One, in Surfers Paradise, which is under construction.

Benson Property Group chairman Elias Jreissati. Picture: Supplied

After several knock-backs by the Hobart City Council, the Bensons’ Montpelier House development at 1 Knopwood St, Battery Point was granted planning approvals in 2023 following an appeal to the Tasmanian Civil and Administrative Tribunal.

The project, which will comprise 21 apartments, is still not shovel-ready and has attracted eight buyers to date. The sales campaign is expected to continue amid the administration and receivership period and against the backdrop of a soft property market.

The penthouse will be retained by Mr Jreissati and his wife Colleen.

The Mercury understands local consultant teams have been engaged to oversee the final design of the complex, as well as building approvals and construction, which is anticipated to begin within the next six months.

Craig Shepard and Sebastian Ham of KordaMentha have been appointed as voluntary administrators of Bensons, while McGrathNicol’s Keith Crawford and Matthew Caddy are the receivers and managers overseeing the ongoing operation of the company.

Artist’s impression of the Montpelier House development. Pic: Fender Katsalidis

The first meeting of Bensons’ creditors will be held on Thursday, where a proposal will be put to them that administrators say will enable the company to continue trading both during and beyond administration and receivership.

In a statement, Bensons Property Group managing director and chief executive officer Rick Curtis acknowledged the challenges faced in the property sector in the wake of the Covid pandemic.

“Bensons Property Group is a proud property developer that is in the business of delivering homes for Australians to live in and own, but we need this reset so that can continue,” he said.

The site of the Montpelier House development, which is not yet shovel-ready. Picture: Amber Wilson

“I … want to assure the hundreds of Australians who have purchased apartments in projects that we are managing, that we are taking this action to help protect their interests and the interests of BPG.”

Mr Crawford, one of the receivers and managers, said he expected the Jreissati family to present a “compelling” deed of company arrangement to the administrators for creditors to consider.

“Our instructions are to ensure that all of BPG’s existing development projects continue without delay while BPG restructures its affairs to best protect the business and its many stakeholders, ensure timely project delivery for the benefit of customers, and maximise returns for legacy investor creditors,” he said.