Bensons Property Group has finalised the purchase of a prime Docklands site days after emerging from voluntary administration.
The Melbourne-based developer secured the 4509sq m site at 194-204 Lorimer Street from Samma Property Group for what industry sources suggest was “just over $20 million”.
The acquisition is the company’s first major move since exiting administration on February 20.
It entered the process in December of 2024 with debts totalling $812 million.
The property, acquired by Samma Property Group from Development Victoria for $22.5 million in late 2021, comes with planning approval for a residential tower.
Samma’s $250-million plan for a 31-storey tower comprising 402 build-to-rent apartments approved in 2023 was due for completion in 2026.
The Fender Katsalidis-designed project features a non-traditional maritime-inspired silhouette with two sculptural towers extending to ground level.
Bensons plans to establish two new investment funds targeting the same creditors who recently accepted reduced debt settlements.
These funds would support the development of a luxury residential project on the site.
Bensons Property Group chief executive Rick Curtis said the “site represents a high-quality residential development opportunity, and we anticipate announcing further details in due course”.
The waterfront site has four frontages and views of the Yarra River, Melbourne’s CBD and Port Phillip Bay.
It is next to the Bolte Bridge and contains the heritage-listed Shed 21, dating from the 1950s, which was to be integrated into the architectural design with a connecting public realm.
Bensons Property Group will serve as development manager for the project, overseeing the full development process including pre-sales, construction and delivery.
The company said that due diligence on the site began in the fourth quarter of 2024, with the sales contract finalised in late February.
This acquisition follows the developer’s emergence from a challenging financial period.
Creditors voted overwhelmingly (99.1 per cent) to approve a Deed of Company Arrangement on February 7, accepting about $414 million in settlement of more than $811 million owed.
The rescue deal involved the company’s founding Jreissati family committing to inject nearly $480 million over three years.
The decision to approach previous creditors for new investment comes after these same stakeholders agreed to settle for roughly 50 cents on the dollar for their existing claims.
Unsecured creditors reportedly received just 0.14 cents in the dollar, according to the terms of the administration settlement.
“We are committed to providing opportunities for our stakeholders and believe Melbourne remains an attractive market, offering affordability that is increasingly rare in other capital cities,” Curtis said.
Prior to entering administration, the group had more than 1300 homes under construction across Victoria, Queensland and Tasmania. Its projects were valued at about $1.5 billion.
Major creditors included Banner Asset Management, which was owed $190 million for the ongoing construction of a $485-million tower on the Gold Coast’s Chevron Island.
Bensons’ financial situation had deteriorated significantly, with revenue plummeting from $243 million in 2019 to just $4 million by December 2024.
The administrator’s report revealed potential insolvency dating back to July 2023, though directors had sought “safe harbour” protection during this period.
Throughout the administration, BPG continued trading without interruption to existing projects or staff redundancies.
The company’s portfolio includes notable Melbourne developments such as Society Armadale, Liberty One tower in Footscray, and St James Park in Hawthorn.
Founded in 1994 by Lebanese immigrant Elias Jreissati (pictured top), Bensons plans to deliver its $1.5-billion development pipeline comprising more than 1000 homes across multiple projects. The Docklands acquisition is its first step towards growth beyond the existing pipeline.
