Golden Age Sticks with CBD Tower Despite Roberts Co Woes

Golden Age Group says it wants to complete its 130LC tower in the Melbourne CBD left unfinished when Roberts Co Vic collapsed. The developer told The Urban Developer that it wanted to get subcontractors back onsite as soon as it could. “Golden Age Group is committed to the completion of 130LC and working to implement solutions as swiftly as possible,” a spokesperson said. “The development team are working closely with more than 30 subcontractors who have been involved with 130 to ascertain the final works to be done. “The aim is to have all the subcontractors back onsite ASAP.” The Roberts Co story has developed from the collapse of its Victorian arm and possible rescue plans, to NSW, where the builder’s branch there has been sold. United Arab Emirates developer Arada has stepped in with a deal to take over Roberts Co NSW, retaining the name as the company is restructured. This comes after the announcement of a possible rescue plan for Roberts Co Vic via a deed of company arrangement. Roberts Co chief executive Emma Shipley has since told the media that the NSW company will expand into residential and withdraw from the defence sector. Shipley has been reported as making a commitment to move below the $200-million project minimum her predecessors set, saying she would look at anything from $100 million to $1 billion. The Arada deal, price undisclosed, means Roberts Co founder Andrew Roberts will exit the construction industry. The family’s controlling share in Multiplex was sold to Brookfield in 2007. Arada plans to create a new entity that uses the Roberts Co NSW name and will ask 120 staff to stay on. It also wants to exit operations in Western Australia after completing two projects there. The deed of company arrangement may still be on the cards for Roberts Co Vic—Arada told media that the sale of the NSW arm was not expected to affect the rescue plan for the Victorian arm. Financial advisers Deloitte have been asked to assist in reviving the business operations and a plan to take the Victorian arm back from administrators McGrathNicol. ▲ A rendering of one of the buildings at the Craigieburn Logistics Estate, 42km north of the Melbourne CBD. Earlier in the month the administrators were granted in the Federal Court a two-month extension for a second creditors’ meeting to allow a deed of company arrangement to be created, in preference to liquidation. Administrators confirmed that Roberts and other directors of Roberts Co were working on the deed of company arrangement so that creditors could consider it at the meeting. But the amount owed has increased to $272 million, according to media reports with several large projects in Melbourne left unfinished. These include Investa’s built-to-rent tower at Footscray and ESR’s Amazon distribution centre north of the CBD as well as Golden Age’s 130LC project. Industry sources said Investa could resume work on the Footscray project by June if a new builder could be found. ESR told The Urban Developer earlier this month that it was keen to continue its project. But with staff of the Victorian arm already made redundant and at least 180 subcontractors involved, getting those projects back on track may well prove difficult. Tradies are owed about $50 million with Roberts Co trying to separate the Victorian arm in February so it did not need to cover its debts. Administrators can reverse this if the company is liquidated within six months after revocation and have confirmed that the extension would not proceed past six months. This would still give them the option to liquidate the Victorian arm and have its debts paid by the parent firm, however McGrathNicol said it would need to consider the impacts of doing so on the parent firm and creditors. An early proposal from Roberts would also mean the creditors’ meeting would be held earlier. Roberts Co took on Probuild projects after that builder collapsed in 2022.

Golden Age Sticks with CBD Tower Despite Roberts Co Woes

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