Bensons Property Group, a major player in Australia’s property development industry, has entered voluntary administration due to increasingly difficult conditions in the nation’s construction sector. The company, which has a development pipeline valued at $1.5 billion, attributes its financial troubles to factors such as rising interest rates and escalating construction costs.
Despite this, the company has assured stakeholders that its ongoing projects will not be affected by the administration. The appointment of Craig Shepard and Sebastian Ham from Korda Mentha as voluntary administrators, alongside Keith Crawford and Matthew Caddy from McGrath Nicol overseeing operations as receivers and managers, signals the company’s commitment to ensuring its current work continues. Bensons is working on more than 1,300 residential units across key Australian states, including high-profile projects in Victoria, Queensland, and Tasmania.
Managing Director Rick Curtis emphasized that the administration would protect the company’s interests, safeguard employees, and ensure that projects under construction proceed without disruption. “This decision was not taken lightly, but it is necessary to secure the future of our ongoing developments,” Curtis explained.
Bensons Property Group’s $1.5 billion development portfolio includes large-scale residential projects such as a 41-level tower on the Gold Coast and a series of apartment complexes across Melbourne. While the company’s larger ventures continue, smaller developments may experience delays as part of the broader challenges facing the construction sector in Australia.
The property development sector, especially post-COVID, has experienced immense strain, with many companies like Probuild, Clough Group, and Porter Davis Homes also entering administration. A combination of supply chain disruptions, rising material costs, and labor shortages has resulted in a record number of insolvencies. According to data from the Australian Securities and Investments Commission (ASIC), more than 2,800 construction firms went into insolvency during the 2023-24 financial year.
Compounding these challenges, the industry has also faced significant industrial disputes, with the construction sector accounting for 59% of the total lost working days in the September quarter, according to Master Builders Australia. These delays exacerbate the housing crisis, as the federal government aims to build 1.2 million new homes by 2029 to address the growing housing demand.
Bensons Property Group’s entry into administration highlights the broader struggles of the Australian construction industry, which is grappling with volatile economic conditions and rising operational costs. As the industry navigates these turbulent times, many will be watching to see how Bensons and other developers respond to these challenges in the coming months.
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