Roberts Co Wins $235m Footscray Towers Project

Sydney-based construction company Roberts Co is to make a further foray into the Victorian market with a contract for 700 build-to-rent apartments in Melbourne’s inner west.

Commercial real estate company Investa has partnered with the Oxford Property Group to award Roberts Co the $235-million contract in McNab Avenue, Footscray.

Collapsed building giant Probuild first tendered for the contract to raise three buildings at 19 storeys, 16 storeys and eight storeys before going into administration.

“It was a live tender while [Probuild] were in administration,” Roberts Co’s pre-construction director Andrew La Rocca, who worked for Probuild at the time, said.

“We priced it in December last year, it was our first pricing submission. We were shortlisted down to two, and then we went into administration while we were shortlisted,” La Rocca said.

“We were still allowed by Investa to put in our best and final offer as Probuild under administration, knowing that there was a pending transaction with Roberts Co.

“So we originally tended it as Probuild but we've secured it as Roberts Co.”

The development, which is expected to begin construction in October, will include 702 apartments, 275 carparking spaces, a gymnasium, co-working space, private dining, lounge and games area, as well as a rooftop basketball court.

“This contract cements Roberts Co’s place in the Melbourne market and builds on the company’s strong heritage and experience in the residential and build-to-rent (BtR) sectors,” Roberts Co’s Victorian managing director Luke Stambolis said.

“We are excited to be partnering with Investa for the first time to bring this precinct to life and contribute to the vibrant community feel of Footscray.”

It is Investa’s first build-to-rent project under its partnership with Oxford Property Group.

▲ Probuild went into administration while they were shortlisted for the Footscray apartments.

Probuild, one of Australia’s biggest construction companies, collapsed late in February when its Johannesburg-listed majority owner, Wilson Bayly Holmes-Ovcon, said it would no longer provide financial assistance to the construction firm, and called in administrators.

Roberts Co then acquired much of Probuild’s liabilities when it took over the company’s five Melbourne projects, using the opportunity to take a sizeable chunk of the Victorian market.

It is understood the Footscray build-to-rent development will be Roberts Co’s sixth project in the state.

La Rocca said at peak the site would employ about 300 people, but conceded rising construction costs remained an issue.

“Of course, it's difficult,” he said. “There are increasing costs at the moment across various different building components and materials,” he said.

“So, without going into too much detail about the arrangements on this particular contract, we have put some mechanisms in place.

“The client has a few things that they need to do to get the job started on site,” La Rocca said. “But if those things don’t fall into line, and if we don't start in October, there are provisions that flow off that, we can reassess certain components of it.”