Rivergum Homes

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Rivergum Homes

#1 Post by d3v310per » Thu Jun 06, 2019 11:49 am

Rivergum Homes to pull out of Queensland, CEO Marc Taintey departs
One of the state’s biggest home builders has pulled out of the Queensland market, less than a month after shedding nine jobs in South Australia.

One of the state’s biggest home builders has pulled out of the Queensland market, less than a month after shedding nine jobs in South Australia.

Rivergum Homes has blamed a weak housing market in the sunshine state for its withdrawal, which comes just eight months after pinpointing Queensland as a key part of its national expansion plans.

Former chief executive Marc Taintey left the company at the end of last month following more than two years in the top job.

Rivergum managing director Victor Said made the Queensland announcement to staff yesterday, telling them the decision reflected the company’s “prudent approach to business growth”.

“Our philosophy has always been to be here for a long time, not just for a good time – and on our 25th anniversary of operation, that approach continues to serve us well,” Mr Said told staff.

“We have been building in Brisbane for the past 15 years – largely for the investor market but

with more recent plans to expand our retail presence.

“However, the reality is that the Queensland market is not performing well and we have

concluded that the business will be best served by pausing our ambitions until it rebounds.”

Rivergum has stopped taking orders for new homes in Queensland, but will complete its current pipeline of projects - a process expected to take nine to 12 months.

Some of the company’s 14 staff in Brisbane will conclude their roles in three months, while others will remain in the business until current construction commitments are met.

Last month, Rivergum confirmed the loss of nine jobs from its local South Australian workforce, due to “structural and operational changes”.

In September, Mr Taintey told The Advertiser that Rivergum was targeting growth in Queensland and Victoria as part of an ambitious plan to nearly double its volume and become a 1000-homes-a-year builder within three years.

“To establish a sustainable presence in an interstate market we’d need to go beyond 200 homes a year,” he said at the time.

“In the next three years that’s the sort of volumes that we should be producing. That would bring us to 50 per cent in our own backyard (South Australia) and then two equal size businesses in those growing markets.”

Yesterday, Mr Said reaffirmed the company’s commitment to the Victorian investment market, with projects including its YoYo housing development in Melbourne’s north, and an independent living project for property group Lend Lease, which will commence soon.

The company does not have a retail presence in Melbourne.

Mr Said expects a kick-up in residential construction in the second half of this year, following last month’s federal election and the expectation of further interest rate cuts in the coming months.

“In our home market of South Australia, we expect to marginally grow our market share as the local market grows again in the second half of 2019,” he said.

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