Sydney-based builder Roberts Co, founded by Multiplex developer Andrew Roberts, is looking to take over embattled Probuild Melbourne projects as administrators work to get the business and workers back on track.
Melbourne-based Probuild, which went into administration last month, said on Monday that Roberts Co was entering into due diligence over the projects but has not made any firm decisions.
More than $5 billion of major building projects around Australia are in limbo after Probuild collapsed into administration on February 24, owing 2300 creditors and 786 employees millions of dollars.
Probuild’s parent company WBHO Australia Group is controlled by South African-based Wilson Bayly Holmes-Ovcon Limited, but last month it withdrew financial support for the Australian business, and administrators from Deloitte were appointed.
Deloitte said in a statement on Monday that Roberts Co would undertake due diligence over the next two weeks and any deal would include ongoing employment for the relevant Probuild staff.
If it went ahead, the deal would give Roberts Co, which Mr Roberts founded in 2017, much bigger exposure in the Victorian market.
“It’s not often the right opportunities present themselves under such challenging circumstances. This one aligns with our growth plans into Victoria following a successful launch in NSW over the past five years,” Roberts Co chief executive Alison Mirams said.
“We look forward to regaining the trust of the clients, staff and subcontractors as we continue to build a better way.”
The developer Far East Consortium will take over its four-tower, $2 billion West Side Place project on Lonsdale Street in the Melbourne CBD, while an agreement has been reached with Woodlink for Probuild to restart construction of Woodlink’s 137-suite, 15-storey hotel project in East Melbourne from later this week.
The administrators are still working on resolutions for the Sydney, Brisbane and Perth ProBuild projects.
Deloitte administrator Sal Algeri said it was “an excellent” outcome that a potential buyer was undertaking due diligence just over a week into the administration.
“While due diligence is still to be completed, this is an excellent outcome for these parts of the group’s operations in terms of employment and certainty for sub-contractors, suppliers and other stakeholders,” he said.
Deloitte also confirmed that the sale process of the WHBO Infrastructure diversified engineering and infrastructure business in Western Australia was progressing well with offers due on Friday, March 11.
Mr Algeri said administrators hoped that work would restart on some Probuild projects shortly under arrangements agreed with Probuild’s clients.