RGD project takeover firm withdraws builder licence bid
The company which took over a failed major Coast building firm's projects has withdrawn its application for an open builder's licence with the state's construction industry watchdog.
Clark Group Constructions Pty Ltd had applied for a builder licence, after it was registered on April 6, just weeks before RGD Group Pty Ltd and RGD Constructions Pty Ltd were placed into administration.
The Clark Group had taken charge of a number of key RGD projects and personnel, after RGD Group shareholder Greg Clark had spent almost $30 million trying to prop up the failing Coast building companies prior to their collapse.
Greg Clark's Minyama Island address was the same as that listed by the Australian Securities and Investments Commission for Darryl Clark, director of Clark Group Constructions.
It was understood there were now no licence applications from Clark Group Constructions under assessment by the Queensland Building and Construction Commission, and no licence currently held by the company.
Porter Davies Lawyers principal John Porter, a representative of Greg Clark's said the Clark Group was in discussions "with a major third-party builder" to take over construction of at least one major residential unit development, which had been an RGD project.
An announcement was expected to be made in the coming weeks.
The third-party builder was understood to be being engaged to deliver the Seanna Residences project at Bokarina Beach, a luxury apartment project which had been valued at $9.9 million recently.
In a letter to creditors written by Mr Porter on behalf of Greg Clark, it was confirmed that $12.7 million had been paid for the Seanna Residences project opportunity.
Southbank at Birtinya Island was also set to be carried on by Clark Group, with a price of $8.8 million to be paid for the project opportunity, after it had been valued at about $4 million recently.The letter, penned in May, said the Seanna and Southbank projects would be built "by a qualified and experienced builder".
"Both projects will be high quality projects and will be constructed using local suppliers and subcontractors," the letter said.
"The carrying out of the Seanna and Southbank projects, will provide a significant boost to the Sunshine Coast economy (and to trade suppliers and subcontractors) at a time when that economic boost is very badly needed.
"The Clark Group is directing its attention and energies to a long term future in development on the Sunshine Coast.
"It is securing a pipeline of quality projects into the future. These projects will provide ongoing support for local suppliers and subcontractors and with their assistance, establish the reputation of the Clark Group as an long term quality participant in the development industry in Queensland."
A recent report by FTI Consulting, the liquidators appointed to RGD Group, had recommended the companies be wound up.
It was unlikely there would be any return to unsecured creditors.
FTI Consulting investigators also found "comprehensive losses" of about $10 million and $9.3 million had been recorded by RGD Constructions in the 2019 and 2020 financial years.
