World News – AU – Grocon appoints Directors as Barangaroo Stoush

construction giant Grocon summoned officials after announcing that its construction business was insolvent and directly blaming NSW’s handling infrastructure for the company’s Central Barangaroo project in Sydney.

Work has already halted at a major in-city office site in Melbourne, as subcontractors disrupted tools after unpaid for months.

Grocon Chairman and CEO Daniel Grollo said Infrastructure New South Wales’ handling of the Barangaroo project in Sydney forced the developer to summon officials. Credit: Wayne Taylor

However, Grocon said that the Ribbon development at Sydney’s Darling Harbor and the Northumberland development in Collingwood, Melbourne would not be included in the administrative entities.

The Melbourne-based private developer was founded 73 years ago by Luigi Grollo and after his death it was run by his grandson, Daniel Grollo.

Mr Grollo said in a statement that it was unfortunate that INSW was forcing its hand to put construction work into management.

“While I had previously talked about moving Grocon away from the building business model to new initiatives like Build to Rent, I didn’t want to call in those responsible,” Mr. Grollo said.

My desire to pay my creditors in full. I think we will ultimately win the case against INSW and when we do, the creditors will be the first to receive compensation.

Grocon’s construction legacy in Australia’s largest city rivals any other private developer. But the developer has faced a series of legal challenges in the courts, most recently with the heavy-duty real estate companies Dexus, APN Property Group and GPT, but also with its $ 270 million statutory firm with Infrastructure NSW..

Grocon launched a new legal action against the New South Wales government in July, in an effort to compel the release of settlement documents in connection with the Central Barangaroo project.

Work on Grocon’s only Melbourne project – Northumberland Development, a 12-story inner-city office in Collingwood – has stopped and the company has summoned officials Credit: Simon SchluterÂ

Grocon says she is now fighting for compensation in the New South Wales Supreme Court after two years of trying to negotiate with INSW, the government agency that has dealt with the area since the closure of the Barangaroo Development Authority (BDA) in July 2019..

In September 2020, INSW won a court order forcing Grocon to pay $ 1 million in security to the agency’s legal costs in order to advance her case, another move that Grollo says aims to add additional pressure to the company’s financial position and force Grocon to walk away from litigation..

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Grocon, Daniel Grollo, Construction, Government of New South Wales, Infrastructure NSW