{"id":39457,"date":"2022-07-09T11:38:11","date_gmt":"2022-07-08T23:38:11","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39457"},"modified":"2022-07-09T11:38:11","modified_gmt":"2022-07-08T23:38:11","slug":"metricon-launches-massive-sell-off-with-dozens-of-display-homes-for-sale-amid-collapse-fears","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/metricon-launches-massive-sell-off-with-dozens-of-display-homes-for-sale-amid-collapse-fears\/","title":{"rendered":"Metricon launches massive sell-off with dozens of display homes for sale amid collapse fears"},"content":{"rendered":"

PHOTO: Metricon. FILE<\/strong><\/p>\n

Embattled construction giant Metricon has quietly put dozens of display homes worth tens of millions on the market as fears for its future mount.<\/p>\n

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Struggling construction titan Metricon has listed more than 50 display homes for sale as collapse fears continue to grow.<\/p>\n<\/div>\n

In May, reports emerged that Australia\u2019s biggest builder was on the verge of ruin, as claims the company was facing serious financial problems spread.<\/p>\n

Acting CEO Peter Langfelder has repeatedly shot down those allegations, but a question mark still hangs over Metricon\u2019s future, despite the company injecting $30 million into its business to allay fears about its survival, company representatives meeting with the Victorian government for crisis talks about the escalating issues plaguing the sector and a rescue deal being struck with the Commonwealth Bank.<\/p>\n

\"Langford<\/a><\/div>\n
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Those industry-wide problems have already seen Gold Coast-based Condev and industry giant Probuild enter into liquidation in recent months, while smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also failed, leaving homeowners out of pocket and with unfinished houses.<\/p>\n

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\"Metricon<\/div>\n

Metricon has dozens of display homes for sale, including this one in Seaford Heights in South Australia.<\/strong><\/em><\/div>\n

The crisis is the result of a perfect storm of conditions hitting one after the other, including supply chain disruptions due largely to the pandemic and then the Russia-Ukraine conflict, followed by skilled labour shortages, skyrocketing costs of materials and logistics and extreme weather events.<\/p>\n

The industry\u2019s traditional reliance on fixed-price contracts has also seriously exacerbated the problem, with contracts signed months before a build gets underway., including the surging costs of essential materials such as timber and steel.<\/p>\n

\"Waterford<\/a><\/div>\n
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BUILDING CRISIS: Another building company in liquidation<\/a><\/h2>\n<\/header>\n<\/div>\n

Now, publicly available data has revealed that Metricon has put 57 display homes on the market across NSW, Queensland, South Australia and Victoria.<\/p>\n

In total, the homes for sale are worth around $65 million, with the homes \u2013 ranging in price from $650,000 to $3.2 million \u2013 all being listed within the last two weeks.<\/p>\n

The company also has vacant land worth a combined $17 million on the market in Queensland and NSW.<\/p>\n

Around two-thirds of the Metricon properties currently on the market are being sold with a leaseback arrangement, which means they would remain display homes, while the buyer would score a return of up to 8 per cent.<\/p>\n

Mr Langfelder said in a statement that the sales were simply part of Metricon\u2019s \u201cnatural cycle\u201d.<\/p>\n

\u201cMetricon builds displays, sometimes they are then sold to investors who lease them back to Metricon for a period of time to use as display homes, sometimes they are sold without a lease when they are not needed anymore,\u2019\u2019 he said.<\/p>\n

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\u201cThis is how Metricon has always run its display program.<\/p>\n

\u201cThe display fund group are selling a number of display homes as part of the natural cycle of the fund\u2019s operations. The majority of the displays will continue to be leased by Metricon.\u201d<\/p>\n

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\"Metricon\u2019s<\/div>\n

Metricon\u2019s acting chief executive Peter Langfelder has denied claims the company is in trouble. Picture: Kiel Egging<\/strong><\/em><\/div>\n

It comes after it recently emerged that Australia recorded a staggering 3917 liquidations or administration appointments across all industries during the 2021-22 financial year.<\/p>\n

\"Builders\"<\/a><\/div>\n
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