Roberts Co NSW to be acquired by UAE builder Arada

Both Shipley and Roberts Co executive chairman George Kostas have been offered contracts by Arada to stay with the company. The immediate task for them is to encourage their 120 staff to stay and formally sign on to a new Arada-owned entity that will keep the Roberts name and which will employ them.

The deal gave the business a chance to expand and grow, Shipley told The Australian Financial Review late on Thursday.

“What we’ve done here is brilliant,” Shipley said. “My staff are an integral part and I need them all to come across. It’s exciting and it’s good. I was the first chief financial officer of this business and have absolute full commitment to stay with this business for a long period of time.”

Separately, the sale of NSW business is not thought to affect the administration process underway with the insolvent Victorian business, Roberts Co VIC, put into administration last month.

That entity remains in administration and work has yet to resume on any of its projects, but there were hopes they would restart within the next two weeks, a source with knowledge of the business said.

NSW projects

Roberts Co NSW would look to expand in its home market of NSW – but the group will withdraw from WA after completing two projects it has in the state. Shipley said the two projects are a joint venture with contractor Webuild that has been awarded preferred tenderer status to build a $1.8 billion New Women and Babies Hospital, and The Dunes Beachfront Residences project for developer Edge Visionary Living.

The sale process would have no bearing on any of Roberts Co’s project in NSW, she said.

“I’ve spoken to all our clients in NSW about what’s about to happen and, as far as I understand, I have their support,” Shipley said.

Those projects include construction of the $330 million Paediatric Services Building of the Children’s Hospital at Westmead, construction of two schools at Carlingford and Cumberland, and the 428-unit Home Parramatta build-to-rent project.

The NSW business was founded originally as Roberts Pizzarotti and is the jewel in the crown of the group. The decision to sell relieves Andrew Roberts – who ranked 151st on the Financial Review Rich List last year with a fortune of $999 million – from the task of recapitalising the company that has been funding the loss-making Victorian arm.

“To ensure the prosperity and sustainability of NSW, we have been focused on securing a recapitalisation of our business,” Shipley said in an email to staff on Thursday.

“Arada are purchasing the Roberts Co (NSW) Pty Ltd entity, are acquiring the global rights to the Roberts Co brand and have committed to a substantial investment of new capital on to our balance sheet,” she told staff.

Shipley declined to say how much Arada would put into the company.

“It’s significant capital,” she said.

She also said Roberts Co’s providers of security guarantees were prepared to extend those facilities in order for the recapitalised company to grow.

“My bonding providers have given full support to allow the NSW business to be sold and to give us bonding facility to allow the business to grow successfully,” Shipley said.

The sale agreement has been signed and is due to complete next week.

Roberts declined to comment. His decision not to pursue a recapitalisation marks a likely end to his investment in the construction business.

Arada already has a business in Australia, trading as Arada Development, and the company wanted to grow, the source said.