Strongbuild

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Strongbuild went into administration after an external consultant fed confidential, incomplete information about its financial affairs to Frasers. 
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The administration came after <a href="/news/frasers-property-edmondson-park-works-cancellation-triggers-strongbuild-voluntary-administration">Frasers' eleventh hour works cancellation</a> of the next stage at Edmondson Park in Sydney.
The cancellation meant a $10.5 million lending facility the company had arranged also fell through, Strongbuild managing director Adam Strong told Fairfax Media.
Strong said Frasers received confidential information from the consultant Strongbuild had engaged to assess its finances.
The consultant, who Mr Strong said had admitted to passing on information to Frasers, was unaware of the facility.
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<div>"We had this consultant doing the forensics, which was part of the process of raising equity and debt," Mr Strong told The Australian Financial Review.</div>
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"Unbeknown to us, he was feeding confidential information to one of our clients, Frasers."
Mr Strong declined to name the consultant. A Frasers spokeswoman declined to comment. Administrator Brian Silvia said he could not comment.
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Frasers' decision to cancel work on 104 townhouses, two weeks ahead of the scheduled start, had "blindsided" Strongbuild, Strong said.
Strong who heads the family-owned Strongbuild said he believed Frasers terminated the second stage of its Edmondson Park project on the basis of the information it received from the client.  
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Mr Strong said the consultant had owned up to passing on confidential information, but Frasers had denied receiving any such information about Strongbuild.
Mr Strong said Strongbuild had issued legal letters to the consultant and Frasers before the company went into administration on Thursday, but since he was no longer in control of the company, he could not do more.
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"At the moment all we can do is reserve our rights to make a claim," he said.
 
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Frasers Property fed confidential information on Strongbuild's Edmondson Park readiness

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Strongbuild has collapsed into voluntary administration after the developer Frasers Property Australia cancelled a $45 million contract which left the builder unable to pay its bills.
The Strong family-owned company that employed 150 staff in three divisions was a prefabricated construction pioneer.
Administrator BRI Ferrier was appointed this morning to Strongbuild Manufacturing, Strongbuild Commercial and Strongbuild Propriety.
The company is owned by the Strong family from the New South Wales South Coast.
It had a turnover last year of $160 million, but had been suffering from a "lull" in work, BRI Ferrier administrator Brian Silvia advised. 
"They had a bit of a downturn in work before June and they were anticipating coming out of a bit of a lull with an order book of $120 million, and a major client pulled a contract two weeks out from the start date, which had a value of $45 million," Mr Silvia told The Australian Financial Review. 
"With the loss of the contract it meant the short-term future of the company was too bleak for the directors to be able to carry on."
Silvia said Strongbuild had made a claim against Frasers over the cancelled stage two $45 million contract for its Edmondson Park project in south-west Sydney of 104 townhouses. Frasers recently advised only three 1-bedroom townhomes remained following its recent launch.
A spokeswoman for Frasers told Fairfax Media it was a commercial matter and declined to comment. 
Some 1,800 homes were envisaged in the now stalled Frasers Property community.
Strongbuild managing director Adam Strong told The Fifth Estate that Frasers gave no reason for "reneging" on the arrangement, other to cite matters of  “convenience.”
Strong said 22 townhouses in stage one had already been successfully delivered by his company.
“We had a debt facility approved that would have been more than enough to get through this squeeze last week.
“And what’s happened is Frasers terminated a contract on Friday last week without allowing us to address any of their concerns," Adam Strong said.
The company had worked on the award winning Putney Hill project, an earlier Frasers Property community.
Putney Hill represented the Singaporean Frasers Property's first delivery of off-the-plan houses in Australia.
Frasers are set to face <a href="/news/frasers-property-australia-facing-residential-challenges-in-2019">residential challenges in 2019.</a>
Just 2,300 units are planned for completion and settlement in FY19 by Frasers Property Australia, compared to over 3,000 units settled during FY18.
They had success at Ed.Square, their mixed-use community in south west Sydney, when <a href="/expert-insights/investing/ed-square-poised-to-become-the-new-social-centrepiece-for-south-west-sydney">seeking commercial tenants earlier this year.</a>
 
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Frasers Property Edmondson Park works cancellation triggers Strongbuild voluntary administration

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Prefabricated construction specialists Strongbuild are about to break ground on the Phoenix Luxury Apartments, a 134 dwelling development at Rouse Hill that will be built using a combination of cross-laminated timber (CLT) and lightweight timber techniques.
Strongbuild opened their state-of-the-art panelisation facility in Bella Vista 12 months ago.
Warren McGregor, CEO of prefabAUS, said Strongbuild’s commitment to improved construction processes has seen the company forge a leading position in Australia in adopting automation technologies, underpinning the company’s strong growth and success in winning showcase projects.
"It also demonstrates the importance of prefabrication as a response to the Australian housing crisis," he said.
“Strongbuild, and prefabrication generally, is helping to meet the challenges of the housing crisis, particular in areas of intense growth such as in north-west Sydney.
"Prefabrication delivers healthy, environmentally efficient, more sustainable housing to shorter construction timelines and with less wastage.
Adam Strong, Strongbuild’s managing director said the NSW Government’s plans for growth influenced Strongbuild’s decision to place their manufacturing facility in north-west Sydney. 
“The decision to locate our panelisation facility in Bella Vista was influenced by the fact that Sydney’s north-west is a high-growth multi-residential area and provides access to a great pool of appropriately skilled staff," he said.
“Also, the north-west of Sydney is booming and is a massive growth corridor.
"The NSW Government has invested a large amount into the Sydney Metro Northwest rail line, which will open in 2019.
"This is driving growth and greater density around the new rail corridor.
"Prefabrication allows for greater control over manufacturing quality and timelines. 
“Prefabrication is about taking control of the negative variables associated with the industry and is achieved via our streamlined approach to building. It results in shorter timeframes and reduced wastage.
“Our manufacturing facility in Bella Vista is capable of processing engineered timber product (CLT and glulam), creating detailed 3D design and workshop drawings, plus the automated manufacturing of panelisation, all under one roof in a controlled environment.” 
"Panelisation is the automated manufacturing of key building elements, off site in a controlled factory environment. Floors, walls, roofs, bathroom pods and joinery components are pre- finished in the factory then transported to site for streamlined construction. 
“Because of the automated nature of panelisation it is possible to add healthy, energy efficient options to a home for a fraction of the cost of traditional construction techniques.
"Panelisation is bringing the concept of building these kinds of homes well within the reach of individuals and developers alike.
"For the Phoenix project in particular, panelisation will be used to construct the six above- ground levels of the luxury apartments. 
“This makes the project more efficient than a conventional concrete and masonry structure due to advances in manufacturing, increased quality, reduced construction time frames and reduced waste,” Strong says. 
“We've just got to look at better ways, more efficient ways, of delivering products that make sense for western Sydney, not least, to help solve the problems of the housing crisis – a solution utilising CLT and lightweight timber as well as steel supports fits the bill here."
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