08/05/2015 - 11:00

Perth builder goes bust

08/05/2015 - 11:00

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Perth builder goes bust

Home building companies Freelife Homes and Visionaire Homes, both divisions of Capital Works Constructions, have been placed into voluntarily administration, leaving more than 300 customers unsure whether their homes will be built.

Along with Capital Works Constructions, Deloitte Restructuring Services has been appointed as administrators of the group’s labour hire firm, Capital Construction Hire.

In total, the Osborne Park-based group employs around 24 people.

Freelife Homes is currently building houses for 229 customers, while it has a further 84 yet to commence across the metropolitan area.

Its offering is largely focused on first home buyers, with its house-and-land packages tailored for the entry level of the market, starting at $300,000.

Joint voluntary administrator Jason Tracy said Deloitte’s review of the group’s financial situation was only at an early stage, but the priority would be to work with the group’s insurer to make sure all customers homes were completed

“We appreciate this is a difficult and uncertain time, particularly for customers and employees, and we have already begun the process of contacting customers, creditors, insurers and other stakeholders to advise them of the situation,” he said.

“One of our immediate priorities will be to understand the impact on customers and communicate developments to them as soon as possible.”

Mr Tracy said his understanding was the group had been trying to restructure its business and sell off its work in progress, pipeline of works and intellectual property.

“However, a voluntary administration was considered necessary given the financial position of the group,” he said.

Mr Tracy said Deloitte would also focus on maximising the value of the pipeline of works and intellectual property. 

 

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