Historic Davaar House, built in 1876 and owned by developer Salvatore ‘Sam’ Sgherza being sold for $2 million
A HISTORIC city mansion is being sold to recoup money owed by an embattled property developer who is facing multiple criminal charges.
A HISTORIC city mansion is being sold to recoup money owed by an embattled property developer who is facing multiple criminal charges.
Finance company CEG Direct Securities is asking $2 million for 172-year-old Davaar House, which was being restored as part of the $35 million August Towers apartment project on the corner of South Tce and Hutt St.
The two-storey mansion is among a suite of properties, including a development site at Wright Street in the city and Colley Tce, Glenelg, being sold in a bid to recoup some of the $29 million in debts owed by developer Salvatore ‘Sam’ Sgherza.
The Advertiser revealed in May that CEG Direct Securities had taken control of the August Towers apartment building from Mr Sgherza’s company South 2015 Pty Ltd, triggering the former bankrupt businessman to wind-up the company.
Mr Sgherza is separately facing criminal charges for allegedly stealing $1.22 million from investors and defrauding creditors
Davaar House was built for wine and spirit merchant William Johnston in 1876 for £4000 and features 14 rooms, pantries, cellars, larder and bathrooms
CEG director Jim Ventrice said the local heritage-listed Davaar House has generated interest from the neighbouring St Andrews Medical centre and a restaurateur, who he would not name.
He said completed restoration work included new windows, new fencing and internal woodwork.
“A lot of the, I suppose, foundation work has been done,” he said.
The non-heritage addition to the front of the building has also been removed.
He said the heritage listing prevented any new owners from knocking down the building, which had most recently served as headquarters of the TPI Association.
Mr Ventrice said all floors except the penthouse of the August Towers apartment development have been completed.
He said 70 per cent of properties were still for sale.
“There is a lot of interest in the site, it’s really a unique position,” he said of the August Towers property.