Developer behind luxury Highgate Hill apartment building collapses owing $30m

Administrators are investigating the company collapse linked to one of Brisbane’s most luxurious projects, with creditors including private investment funds owed over $30m.

Rootop pool at Sierre Nuvo.

The developer behind one of Brisbane’s most luxurious apartment buildings has collapsed owing creditors more than $30m and potentially ensnaring hundreds of investors.

Bill Karageozis, of McLeod & Partners, has been appointed administrator of Highgate Hill Future Property, which built the Sierra Nuvo apartments in the blue-ribbon suburb.

Mr Karageozis said more than $30 million was owed to creditors, including the Australian Taxation Office, Brisbane City Council and commercial mortgage lender Acumen Finance.

Apartments, which have a price tag of up to $2.3m, were still being sold.

“Investigations into the entire project and the various stakeholders involved continue,” said Mr Karageozis.

Mr Karageozis said the funds to purchase the land and pay the development costs were all borrowed from private investment funds.

“The remaining units owned by the company do not appear sufficient to repay the borrowed funds so we are investigating the potential shortfall,” he said.

He warned that hundreds of investors in the private investment funds may be effected by the company’s collapse. The complex was completed by Tomkins Constructions last year.

Featuring a rooftop sky garden and infinity edge lap pool and spa, the more than 40 apartments at Sierra Nuvo sell for as much as $2m.

Entrance to the Sierra Nuvo complex at Highgate Hill.

The project attracted protests from local residents in 2016 when the company received council approval to demolish three old homes to make way for the construction.

Residents claimed the homes should have been protected but the company said council and state government records did not show any heritage listing for the houses.

Comment has been sought from Highgate Hill Future Property director David Sheehan, who is also listed as director of the company’s sole shareholder Future Asset Management Management International.

Canp Hill-based Future Asset Management International has accumulated losses of more than $600,000 over the past two years, according to financial statements lodged with the Australian Securities and Investments Commission.

The company, founded in 2012, earned most of its income from portfolio management fees and fees from venture capital operations. It also was reponsible for several management investment schemes.