Lavish lifestyle of Oracle founder under threat as empire collapses

Tom Orel’s $5m six-bedroom Gold Coast mansion is under threat from being sold from under him as creditors circle the remains of his formerly high-flying building empire.

Tom Orel’s $5m Gold Coast residence is under threat from being sold from under him as creditors circle the remains of his formerly high-flying building empire.

Oracle Homes, the company founded by the 71-year-old Czech-born businessman in 2014, collapsed this week owing an estimated $14m and leaving 300 homes unfinished across Queensland and New South Wales.

In the weeks leading up to appointment of liquidators to the company at least three suppliers of building materials launched court action to recover unpaid debts owed by Oracle.

One supplier, Dynamic Bradview Roofing successfully lodged a caveat over the Orel sprawling family home in Sir Bruce Small Boulevard at Benowa that is held in the name of Mr Orel’s wife Elia, 54.

The canal-front mansion features six super sized bedrooms, five designer bathrooms and powder room, a home theatre, office, gym, and upstairs teenage retreat.

According to the claim lodged in the Supreme Court last month, Dynamic Bradview is seeking $910,694.93 from Elia Orel who signed a personal guarantee and indemnity in January this year to cover the debt if not paid.

Oracle boss Tom Orel lives in this canal-front mansion.

The Supreme Court ordered a caveat over the home be issued in Dynamic Bradview’s favour on August 12, preventing the sale or transfer of the property until further notice.

According to the claim, the personal guarantee was “continuing and not affected by anything that may happen to the company such as it being placed into liquidation.” The terms of the guarantee meant Mrs Orel “irrevocably and unconditionally consented to the registration of a caveat on any real property she may own as security for the payment of any debt owing” to Dynamic Bradview. Comment has been sought from Tom and Elia Orel.

The Gold Coast mansion includes a home theatre.

While Mr Orel continues to list the Gold Coast mansion as his residence, 300 of his customers with unfinished homes are not so lucky in relation to their accommodation.

The Queensland Building and Construction Commission (QBCC) says homeowners may be able to make a claim under the Queensland Home Warranty Scheme if Oracle paid an insurance premium under the contract. The scheme covers work not completed or if the homeowner paid a deposit and work had not started up to $200,000.

Morayfield Oracle customer Deon Trail estimated the collapse of the company alone has cost his family $21,000 but the price would be much greater. “What we’ve lost in the process is that we sold our house 18 months ago before the market went stupid,” he said.

“We engaged with Oracle in April last year, signed contracts in November and then they increased prices a couple of times so we went our separate ways in mid July and terminated contracts.

“We’ve been waiting to get our deposit back and they’ve been stalling, stalling, stalling and with them going bust we will probably lose that and the QBCC insurance.”

Mr Trail and his wife Ursula had secured a 3000sq m lot at an estate at Morayfield for their dream home. “We’ve built a couple of times before and this was to be it. A nice big house on a big block of land with horses. It was all about lifestyle,” he said.

“It’s been a frustrating 12 months and hindsight is a wonderful thing. In the future we will steer clear of building because it will be three years before we’d be able to get into our dream home. So we will probably end up buying an established property and renovate it a bit.”

Association of Professional Builders co-founder Russ Stephens believes collapses in the construction sector will continue to gather pace.

He said because of the lag factor many larger builders were cash flow positive and legally could continue trading even when they’re losing money.

The Orel family home on the Gold Coast.

“Even when they reach negative equity, they can still pay their suppliers and subcontractors when those invoices become due they can find themselves in an increasingly worse situation,” he said. “They’re are not taking steps to address it by not starting contracts where they will be losing money.”

Mr Stephens called for more transparency in the industry.

“We need the annual financial reports from builders to be a matter of public record so subcontractors and consumers get a better understanding of the financial viability of the company they’re dealing with,” he said.

“Financial reports should be on the licensing authority website and be free and easily accessible to the general public.”

An unfinished Oracle home in Queensland.