Multiplex

[citybangbang]

I have heard that Multiplex are leaving the Adelaide market - can anyone confirm?

[joshzxzx]

Geeees I bloody hope not...

Then again may be good for local business if the go...

[Radelaide]

i am afraid this may be the case unless the government fast tracks the approval and development process for large infrastructure projects such as the prison or the RAH (which ever form it takes). the problem with multiplex is they cannot compete on a level playing field with other adelaide builders, as their own internal policy prevents them from reducing minimum profit margins on projects. will be sad to see them go but will only inject the remaining builders with some really good talent and adelaide will not lose said talent. was looking dire for them in perth of all places until only recently when they won stage 1 of the fiona stanley hospital.

[stumpjumper]

Radelaide, are you able to share the source of your information?

Some changes could be expected after the takeover of Multiplex by Brookfield, an international asset management company. For a start, the Roberts family who had founded Multiplex sold their shares to Brookfield.

In Adelaide, apart from Newport Quays, Brookfield Multiplex is developing the Balfours site development with Adelaide City Council.

Both of those projects are now stalled, or temporarily stopped at least, but in neither case is the published reason anything to do with the company leaving the state.

If BM is leaving SA, they're being very quiet about it. On the other hand, there is no reference to SA developments on the BM corporate website under 'apartments for sale'. Maybe we're just not toffy enough.

If they are thinking of leaving, to cite the lack of fast tracking (read avoiding normal planning processes) as a reason sounds more like a threat, and the inability to lower rigid profit margins sounds like an excuse. Remember that the property industry is the major client of lobbyists to the SA government.

In short, do you have any more information?

[Radelaide]

I have come to understand how they operate in the tender process through word of mouth from friends who work for other builders and i suspect that if they are not awarded any major contracts (which only look like government projects at this time) then they will be in more trouble.

[stumpjumper]

Watch this space, then.

This gt me thinking about large, single developer government partnership housing projects. There are obvious advantages to the builder/developer in controlling a whole site, but what are the advantages to the public compared with developing a master plan then allowing smaller builders to have a go?

At least the risk of a builder failing would not jeopardise the entire project.