Wallaroo Shores project to restart close to a year after Felmeri Group collapse

Photos of the Wallaroo Shores development taken at the time of Felmeri Group’s collapse. Picture: Supplied

The developer behind a stalled resort development at Wallaroo is promising to restart work on the $42m project, close to a year after it was abandoned by failed builder Felmeri Group.

The Wallaroo Shores development ground to a halt in May last year when Felmeri Group collapsed into administration, leaving dozens of partially built homes in limbo.

Developer Monopoly Property Group claims it’s owed close to $11m by Felmeri Group as a result of the builder’s failure, which required Monopoly to raise additional funds from dozens of investors in the Wallaroo Shores project.

A recent LinkedIn post from Housing Industry Association SA executive director Stephen Knight about the status of the project prompted a response from Monopoly’s founder Ben Howard, who claimed work would soon restart after the appointment of a new builder.

“After the liquidation of Felmeri Builders, less than a year ago, we’ve been working with all stakeholders including 28 individual developers and investors in order to raise the additional funds required ($25m) to restart the project,” he wrote.

Felmeri Group’s collapse left close to 100 incomplete homes at the Wallaroo Shores development. Picture: Supplied

“Throughout the process we have been engaging with local, state and federal government to get the project back on its feet, which has been a huge undertaking given the terrible state that the builder left the site in.

“A contract was signed with a new builder in January and their tendering process with trades was recently completed, with a focus on engaging as many previous subcontractors to the project as possible, who also lost substantial amounts of money due to the well documented actions of Felmeri.”

Mr Howard confirmed to The Advertiser that Edwardstown-based commercial construction company Tonkin Schutz Design Build (TSDB) had been appointed to complete the first stage of the project, which includes close to 100 partially completed townhouses

He said the company had already mobilised on site, with construction due to commence imminently.

“MPG (Monopoly Property Group) have been working with the project’s key stakeholders and developers to secure a new builder capable of delivering such an important project for the region and state, while overcoming major hurdles such as Covid and the liquidation of the builder,” he said in a statement provided to The Advertiser.

“TSDB have a proven track record of delivering successful projects and the project’s developers have been very impressed with them since they were engaged in early January.”

Mr Howard said the first townhouses would be completed before Christmas.

The incomplete homes are in various stages of construction. Picture: Supplied

The Wallaroo Shores development has been struck down by a series of delays since plans were first unveiled in 2015, with construction commencing in 2020, close to four years after originally planned.

Townhouses and villas in the first-stage resort – which were sold predominantly to investors from Malaysia, Vietnam and Southeast Asia – had been expected to be completed last September before Felmeri Group’s collapse in May.

Monopoly had earlier planned to follow the first stage resort with a much larger development featuring more houses, offices, shops, cafes, a retirement village and medical centre.

However those plans were shelved, and the 13.85ha of land earmarked for that development put on the market in January last year. A buyer has not been found.