Hansen Constructions NQ attracts strong buyer interest

The opportunity to buy Townsville-based Hansen Constructions NQ is attracting strong interest, with big names in the civil construction industry in Queensland among those running their eyes over the business, according to marketer Slattery. Expressions of interest close on March 1 to purchase the civil construction business following the appointment of administrators last month. The administrators are looking to sell the entire business as a going concern on an 'as-is, where-is' basis, including its 40-strong workforce and about 200 items of plant and equipment. "We have had a number of parties pay a refundable $25,000 deposit to gain access to the data room to undertake due diligence," Slattery valuer and auctioneer James Rouse said. "There are some big names in the civil construction industry in Queensland that have expressed interest." Given the strong interest so far, Slattery was confident it would be able to achieve a result, he said. Michael Brennan and David Stimpson from SV Partners were appointed as administrators for Mainscarf, trading as Hansen Constructions NQ, last month. It came after creditor Forklift It filed an application with the Supreme Court of Queensland in December to wind up the company. Hansen Constructions NQ has been operating since 2003 and provides civil, infrastructure and landscaping services. Recent projects include the Elliot Springs subdivisions, Elliot Springs trunk sewer infrastructure, Fairfield Central Stage 4/Lakeside Drive roundabout upgrade, Fairfield Waters Estate (various stages), Fairways Estate (Stages 1 to 7), Hampton Grove (Stages 1 and 2), Haven (Stage 2), Hillside Gardens, Mount Margaret Estate (Stages 2, 3, 4 and 6), North Shore development, Ross River Estate (Stages 3, 4 and 5), and TAFE Pimlico early works. Documents prepared for the sale show the business achieved more than $26 million in sales in 2023 for a gross profit of about $11.9 million. (This followed gross profits of $9.97 million in 2022 and about $7.6 million in 2021). The administrators say that their investigations into the company’s financial history identified wage and material costs as being significantly higher than industry standards. "If these expenses were reduced to industry benchmarks, the company’s profits for the above period would have been substantial," they note. Mr Rouse said Hansen Constructions NQ had a sizeable presence in the Townsville market, doing work for major developers such as Lendlease and Stockand, and the collapse of such an enterprise would create a major void there. "There are a number of major players in Townsville that are having a serious look at the business," he said. "One of the main attractions of the business is that there's a significant fleet of earth moving equipment that's basically ready to go to work straight away."

Hansen Constructions NQ attracts strong buyer interest

Industry Queensland

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