Mainline Corporation

Mainline Corporation Ltd ("Mainline") was one of Australia's largest construction companies during the late 1960s and early 1970s. Mainline Corporation was responsible for building some of Australia's most notable landmark buildings before its collapse in 1974.

Mainline Construction
IndustryConstruction
FateCollapsed
Founded1961
FounderDick Baker
Defunct1974
Headquarters
Sydney
,
Australia
Area served
Australia, New Zealand, Fiji, United States of America

History

Mainline Corporation was established in 1961 by Mr Richard ("Dick") C Baker as a small construction company in Sydney building apartment blocks in Double Bay and Potts Point.[1] By 1965 it had expanded into commercial developments including the AMP Building and Gold Fields House.

In December 1968, Mainline Corporation Ltd was listed on the Sydney Stock Exchange.[2][3]

In June 1971, Mainline Corporation paid $1.35 million for a site in Canberra CBD.[4]

In August 1971, Mainline Corporation declared a consolided net profit of $844,203 for FY71 on the back of a revenue of $41.5 million for FY71.[5]

In August 1972, Mainline Corproation declared a consolided net profit of $1,722,258 for FY72 on the back of a revenue of $56 million for FY72.[6] The value of the reported building contracts in hand at 30 June 1972 was $123 million.

In September 1973, Mainline Corporation performed a 1:5 premium share issue to raise $3,649,265.[7]

In April 1974, many property developers were paying finance companies 15% for money. By May 1974, develpoers were paying finance companies 19% to 20% for call money. As the liquidity in the market tightened, land prices in Sydney fell 14%, including a 15% drop in prices in sydney's north shore house proces.

On 3 August 1974, Mainline Corporation reported a profit.

On 15 August 1974, Mainline Corporation's shares plunged by 40% on the back of rumors of a liquidty crisis. This resulted in a stock exchange inquiry.

On 20 August 1974 Mainline Corporation's principal creditor, the ANZ Bank, asked for a receiver to be appointed and Mainline was placed in voluntary administration and liquidated.[8][9]

Mainline corporation Ltd appointed Mr J. H. Jamison as the receiver-manager to administer the more than $60 million owed to creditiors.[10][11]

Following the collapse of Mainline Corporation in August 1974, the Builders Labourers Federation (BLF) called for nationalisation of the building industry under workers control.[12]

On the 16 April 1975, sixteen of Mainline Corporation's best properties (estimated at $86.8 million value) across Australia were sold by Sydney auctioneer F. R. Strange under the instruction of the receiver Mr J. H. Jamison to raise fund to pay creditors.[13][14]

Major construction projects

Mainline has built some of Australasia's lankmark buildings, including the following major projects:

Completed Project Project Value Location Notes
1972 Lakeisde Hotel, Canberra Canberra, Australian Capital Territory [15]
AMP Centre Sydney, New South Wales [16]
Randwick Racecourse grandstand $3 million Sydney, New South Wales [17]
Gold Fields House Sydney, New South Wales [18]
AMP Building, Sydney Sydney, New South Wales
Gateway Plaza, 1 Macquarie Place Sydney, New South Wales
25 Bligh Street Sydney, New South Wales
1977 Town Hall House $18 million Sydney, New South Wales [19]
Collins Place Melbourne, Victoria [20]
60 Martin Place Sydney, New South Wales
1964 Surfers Paradise Travelodge Gold Coast, Queensland [21]
1966 The Sands Gold Coast, Queensland [21]
1976 Law Courts Building, Sydney $214 million Sydney, New South Wales
Canberra Club (extensions) $4.6 million Canberra, Australian Capital Territory [22]
Squaw Valley Ski Resort Olympic Valley, California [23]
The Warwick Resort Fiji [24] Project Completed by Coral Surf Resorts

Mainline Investments Pty Ltd

Mainline Investments Pty Ltd, was a wholly owned subsidiary of Mainline Corporation. Mainline Investments owned the following assests:

Year

Purchased

 Year

Sold

 Property / Investment Location Managed By Notes
unknown unknown Macquarie Hotel Port Macquarie, New South Wales Noahs [25]
unknown unknown Royal Hotel-Motel Port Macquarie, New South Wales Noahs [25]
1970 unknown Chevron's Surfers Paradise hotel Gold Coast, Queensland Noahs [21]
1971 unknown Tower Mill motel Wickham Terrace, Brisbane Queensland Noahs [25]

Mainzeal

In 1968, Mainline Corporation Ltd established a branch in New Zealand to develop 7 acres (28,000 m2) of harbour-front land in downtown Auckland, New Zealand.

In 1973, Mainline Corporation Ltd incorporated the company Mainline Corporation of New Zealand, a publicly listed New Zealand company. Mainline Corporation Ltd retained 49% shareholding in Mainline Corporation of New Zealand and the new company acquired all of Mainline's interests in New Zealand.[26]

In 1975, Mainline Corporation of New Zealand adopted the name Mainzeal Corporation Ltd ("Mainzeal").

References
  1. Luxury apartments at Double Bay Canberra Times 28 February 1966 page 11
  2. Mainline to float Canberra Times 4 October 1968 page 13
  3. New Listings Open at Big Premiums Canberra Times 13 December 1968 page 20
  4. "Release of major sites to be announced". Canberra Times (ACT : 1926 - 1995). 1971-06-30. p. 1. Retrieved 2020-11-29.
  5. "SUCCESSFUL YEAR FOR MAINLINE". Canberra Times (ACT : 1926 - 1995). 1971-08-28. p. 19. Retrieved 2020-11-29.
  6. "Mainline lifts profit 104%". Canberra Times (ACT : 1926 - 1995). 1972-08-12. p. 17. Retrieved 2020-11-29.
  7. "Mainline 1:5 issue". Canberra Times (ACT : 1926 - 1995). 1973-09-04. p. 13. Retrieved 2020-11-29.
  8. Receiver call by Mainline group Canberra Times 20 August 1974 page 1
  9. "Future of Mainline undecided". Canberra Times (ACT : 1926 - 1995). 1974-08-27. p. 9. Retrieved 2020-11-29.
  10. "Mainline future". Canberra Times (ACT : 1926 - 1995). 1974-09-13. p. 1. Retrieved 2020-11-29.
  11. "Mainline hopes". Canberra Times (ACT : 1926 - 1995). 1974-08-23. p. 3. Retrieved 2020-11-29.
  12. "NATIONAL INDUSTRIAL NEWS". Tribune (Sydney, NSW : 1939 - 1991). 1974-08-27. p. 4. Retrieved 2020-11-29.
  13. "Mainline sale". Canberra Times (ACT : 1926 - 1995). 1975-04-16. p. 21. Retrieved 2020-11-29.
  14. "Auction of Mainline properties". Canberra Times (ACT : 1926 - 1995). 1975-04-10. p. 8. Retrieved 2020-11-29.
  15. Work to begin on Lakeside Hotel Canberra Times 29 October 1970 page 27
  16. $24.8m contract Canberra Times 24 September 1970 page 31
  17. $3m grandstand for Randwick Canberra Times 7 November 1967 page 29
  18. Final touches to Gold Fields House Daily Telegraph 6 November 1966 page 20
  19. "Mainline workers carry on". Canberra Times (ACT : 1926 - 1995). 1974-08-28. p. 15. Retrieved 2020-11-29.
  20. "The ghosts of corporate past". The Age. 2004-02-11. Retrieved 2020-11-29.
  21. "Mainline option on Chevron". Canberra Times (ACT : 1926 - 1995). 1970-04-22. p. 29. Retrieved 2020-11-29.
  22. "Part of Mainline 'saved'". Canberra Times (ACT : 1926 - 1995). 1974-09-07. p. 3. Retrieved 2020-11-29.
  23. Ancinas, Eddy Starr (2019-10-07). Squaw Valley and Alpine Meadows: Tales from Two Valleys 70th Anniversary Edition. Arcadia Publishing. ISBN 978-1-4671-4405-6.
  24. "Tourism boost for Fiji: Mara". Papua New Guinea Post-Courier (Port Moresby : 1969 - 1981). 1980-02-05. p. 18. Retrieved 2020-11-29.
  25. "Mainline buys Q'ld motel". Canberra Times (ACT : 1926 - 1995). 1971-11-03. p. 26. Retrieved 2020-11-29.
  26. "MAINLINE TO FORM N.Z. OFFSHOOT". Canberra Times (ACT : 1926 - 1995). 1973-10-19. p. 12. Retrieved 2020-11-29.
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