Distressed Property
Capability Statement
Distressed property sales create unique moments where speed, expertise, and capital
converge.
At 756 Group, we identify and structure these opportunities for private funders, transforming distressed assets into strategic investments with clear pathways to value creation.
Who We Are
756Group Pty Ltd is a Sydney-based Development Management and Advisory firm specialising in complex, transitional and distressed property development scenarios.
We are regularly engaged by private lenders, non-bank funders, mortgagees in possession, administrators and secured creditors to step into distressed development projects and stabilise, assess and reposition them toward a commercially viable outcome.
We are not builders, not lenders, and not insolvency practitioners.
Our role is to act as an independent Development Management Consultant and agent for the secured party, providing structured oversight, risk mitigation and commercially grounded decision-making throughout the recovery process.
Our Advisory Role
Distressed development situations most commonly arise where a project has ceased mid-construction, a builder or developer has become insolvent, or the asset has transitioned into Mortgagee in Possession control. In other cases, formal administrative or receivership processes may be underway, or escalating cost overruns and programme failures may have materially undermined the project’s viability. Regardless of the trigger, these circumstances typically create uncertainty around contractual position, construction integrity, capital exposure and the realistic pathway to completion or recovery.
In such scenarios, 756Group is appointed to act on behalf of the lender or secured party to immediately secure and stabilise the asset, establish clear lines of authority and assess the contractual, technical and commercial risks affecting the project. We undertake a structured reassessment of feasibility, rebuild the financial position from first principles where required, and present clearly defined recovery pathways supported by defensible analysis. Once a strategic direction is agreed, we implement and oversee the selected approach under strict governance and reporting protocols.
Our focus throughout is capital preservation, risk containment and the provision of commercially rational decision support that enables secured parties to move from uncertainty to controlled execution.
Distressed Sites: Process and Methodology
Our methodology is structured in four clear stages to provide funders with clarity, control and defensible decision-making.
Stage 1 - Immediate Control and Risk Containment
1. Confirm Authority and Establish Positon
Confirm Authority and Establish Position
- Formal appointment of 756Group as Development Management Consultant (agent for secured party)
- Confirm delegated authority and reporting lines
- Preliminary risk and exposure assessment
- Review of:
Building contract (typically AS4000 or equivalent) - Contract Works insurance
- Public Liability insurance
- Professional Indemnity cover for consultants
- LMI position (if applicable)
- Review of:
2. Secure and Stablise the Site
- Change all site access and master key systems
- Establish CCTV and access control (if required)
- Ensure hoarding, fencing and safety compliance
- Audit WHS systems and documentation
- Review SWMS and principal contractor obligations under relevant state legislation, including:
- Work Health and Safety Act 2011 (NSW & QLD)
- Occupational Health and Safety Act 2004
- Work Health and Safety Act 2012
3. Contractual and Security Review
Full audit of:
- Building contract and side deeds
- Variations register
- EOT register
- Retentions and bank guarantees
- Performance bonds
- Parent company and personal guarantees
- Collateral warranties
- PPSR registrations
This allows assessment of:
- Step-in rights
- Suspension and termination rights
- Security of Payment exposure
- Subcontractor risk profile
- Alignment with relevant Security of Payment legislation
Stage 2 - Technical and Commercial Construction Audit
This stage establishes the true position of the project.
1. Independent Technical Review
Engagement (where required) of independent consultants including Quantity Surveyors and building specialists to assess:
- Cost-to-complete versus certified works
- True value of works in place
- Delivered but uninstalled materials
- Latent defect exposure
- Structural certification status
- Waterproofing integrity and inspection records
- Cladding compliance (if applicable)
- Fire services (wet and dry) compliance
- Services infrastructure including substations and easements
- Programme realism and remobilisation requirements
2. Rebuilding and Development Feasibility
We reconstruct the feasibility model to provide funders with a reliable commercial position:
- Revised cost-to-complete
- Revised programme
- Updated GRV (via agent and valuer engagement)
- Sensitivity analysis including:
- Build cost escalation assumptions
- Market softening scenarios
- Extended holding costs
- Remobilisation delays
This stage provides a clear capital exposure map and decision framework.
Stage 3 - Strategic Decision Pathway
We present structured recovery options to the lender or secured party.
Option A - Negotiate Through With Existing Contractor
Viable where:
- Contractor solvency can be verified
- Variations and EOT exposure are contained
- Completion is materially advanced (typically 45%+)
- Commercial relationship can be stabilised
Option B - Terminate and Re-Procure
Higher risk but sometimes necessary. Key risks:
- Programme reset
- Loss of warranties
- Repricing exposure
- Tender and mobilisation timeframe
Risk mitigation strategies include:
- Securing key subcontractors and suppliers
- Retaining PCA / building surveyor
- Retaining architect and core consultants
- Auditing unpaid subcontractors to limit PPSR risk
- Reviewing retention trust accounts
Option C - De-scope and Complete to Cold Shell
Typically for commercial assets:
- Reduced specification
- Completion of common areas only
- Services to defined tenancies
- Strata establishment
- Removal of non-essential works
Option D - Stabilise and Sell Incomplete
Where exit is preferred:
- Site stabilisation and presentation
- Comprehensive documentation pack
- Verified consultant suite
- Subcontractor engagement clarity
- Defined pathway to Occupation Certificate
Stage 4 - Execution, Monitoring and Governance
Regardless of pathway, strict governance and commercial control measures are implemented to protect capital and maintain disciplined project oversight.
756Group provides:
- Regular site meetings (minuted and distributed)
- Cost tracking
- On-going lender reporting
- PCG meeting attendance
- Milestone verification
- Strict variation approval controls
- Strict EOT assessment and reporting
- Independent certification review where required
Our reporting framework is structured for credit committee transparency and audit defensibility.
Why Choose Us
Independent and Non-Conflicted
We are not builders and not lenders. Our role is aligned to the secured party’s capital protection objectives.
Commercially Grounded Decision Support
We combine construction knowledge, feasibility modelling and contractual analysis to present practical options, not theoretical commentary.
Rapid Stabilisation Capability
Immediate site control and structured reporting reduces uncontrolled risk exposure.
Feasibility Reconstruction Expertise
We rebuild distressed feasibilities from first principles to provide reliable capital exposure clarity.
Execution-Focused Approach
We do not simply provide reports, we implement and manage the agreed recovery strategy.
Target Engagements
We typically act on:
- Mid-construction residential developments
- Mixed-use projects
- Small to mid-scale commercial developments
- Projects valued within private credit exposure ranges
- Mortgagee in Possession appointments
- Administrator-led asset recovery scenarios
Projects Outside Typical Scope
Generally not suited to:
- Large institutional-scale syndicated developments
- Pure land banking without development pathway
- Consumer lending scenarios
- Projects without defined security control
Our Approach to Engagement
We selectively engage where:
- Secured parties require structured, independent oversight
- A project requires immediate stabilisation
- Clear decision frameworks are required for credit committees
- Capital preservation and risk mitigation are priority objectives
Our role is advisory and executive in nature. All commercial decisions remain with the secured party.
Your Next Step
Private funders, credit committees and insolvency practitioners are encouraged to engage 756Group early when distress indicators emerge. Early intervention materially improves capital preservation outcomes and reduces escalation risk.
Given that every distressed project presents unique contractual, commercial and construction considerations, our scope of services is tailored to the specific circumstances of each engagement. We do not adopt a one-size-fits-all approach.
We invite secured parties and stakeholders to contact 756Group to discuss the project at a high level so we can understand the current position, risk profile and strategic objectives. From there, we will prepare a tailored proposal and engagement framework aligned to the project’s specific requirements.
Each appointment is structured to reflect the complexity, stage and risk profile of the asset.
We welcome the opportunity to sit down and work through the most appropriate pathway to support your capital protection and recovery objectives.
Contact Us now for more information about our Distressed Property Services
Our Values
Integrity
We value integrity knowing that our actions match our words. We are transparent, honest, and value a positive work culture.
Dependability
We value dependability as we strive to foster trust. This trust is earnt when we are competent, deliver on time, and work cohesively. Dependability and trust is knowing that we can provide solutions and the best outcome.
Sustainable Practices
We value our planet and we value our community. The decisions we make can impact the future, so we stay true by embracing and caring for our environment.
Commitment
We value our commitment by positively upholding our words and goals to the project through our actions. We are committed in supporting the entirety of the team to achieve optimum outcomes as a whole.
Quality
We value excellence in all aspects of our business structure. We provide quality through efficiency, communication, professional relationships, and our unwavering attention to detail.
Experience
With years of experience we bring a level of support that you need to ensure that all your i's are dotted and your t's are crossed to ensure a smooth and stress-free project from start to finish.
Ready to elevate your project?
Looking for reliable project management support?
Our experienced team is here to assist with everything from development management, funding, procurement to marketing insights and beyond.
Let’s work together to make your vision a reality.