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To quell any rising fears over the stability of the developer, Metricon’s owners have injected $30 million into the business.
Calling it a “demonstration of their commitment to the future of the company”, the firm acknowledged that industry and media speculation following the sudden and unexpected death of company chief executive Mario Biasin had caused concern among stakeholders.
“Metricon’s owners wanted to demonstrate in real dollars – their own –- and not just words, their confidence in its future,” the firm said in a statement announcing the investment.
Acting CEO Peter Langfelder said that the rumours, coupled with general speculation about the health of Australia’s construction industry, were beginning to impact the company.
“We have previously said that our company has a proven history of success and remains profitable and viable and that we have the full support of our key stakeholders.
“We have also appreciated incredible support from many of our customers, suppliers and trades – but sadly, this hasn’t been enough to reinstall the complete confidence of the broader industry,” Mr Langfelder noted.
One of the country’s largest building companies, Metricon currently employs approximately 2,500 staff across Australia’s eastern seaboard, where 4,000 houses are presently under construction.
“This significant injection of capital by the owners demonstrates to our customers, employees, sub-contractors and suppliers our confidence in the viability, profitability and future of the Metricon business. We hope it may help cultivate a groundswell of support for Metricon, which is a great Australian success story,” Mr Langfelder added.
Bolstering the company’s message, the Commonwealth Bank has agreed to a 100 per cent increase of Metricon’s existing working capital facility.
“We are so appreciative of the bank’s support – which demonstrates its confidence in our future,” Mr Langfelder said.
The company’s executives also vowed to hold talks with all key stakeholders on the topic of supporting the entire construction industry as it deals with supply chain issues and drastically rising costs.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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