Cyan Stone’s Clydesdale Estate in Marsden Park faces collapse, owes $40m to 149 creditors

Almost 150 families have allegedly been left millions out of pocket over homes which were never built, after buying western Sydney land from an overseas developer now facing bankruptcy because the ‘empire has collapsed’.

The unfinished subdivison site at the Clydesdale Estate in Marsden Park.

Almost 150 families are allegedly millions out of pocket after buying land in Marsden Park from an overseas developer, who promised “vibrant, family living” before falling into liquidation.

Families keen to “invest in the vision” quickly snapped up off-the-plan Clydesdale Estate blocks being sold to them by a group of interconnected China-backed companies in 2020.

Development on the so-called promised land, which made up part of the estate, was tipped for completion by the end of 2021, but instead a “long, painful waiting game” ensued that left anxious landowners in the dark.

Now this publication can reveal six companies that fell under the China-based BH Holdings – which was recently taken off the Australian Stock Exchange – have entered liquidation owing $40m to creditors, most of who are families.

The unfinished subdivision site at Clydesdale.

Liquidation documents for one of the companies, trading as Cyan Stone Clydesdale Estate 3 Pty Ltd, reveal there are 149 unsecured creditors, while the company’s assets are estimated to be $289,608.

Liquidator Steven Hathway said while $9m of the debt was being held in a trust it was unclear where the remaining $31m would come from, stating “the empire has collapsed”.

“There’s no money left and there’s no land,” Mr Hathaway said.

“They had no capacity to complete the subdivision, substantial work needs to be done before any certificate can be issued and council fees need to be paid.”

Mr Hathway confirmed the entire subdivision had been sold to another company in July, resulting in 150 previous contracts to be revoked from the once hopeful prospective homeowners.

The unfinished subdivision site at Clydesdale.

One prospective buyer who did not wish to be named, said he only found out about the sale when a real estate agent asked if he wanted to repurchase land he had previously signed a contract for – at double the price.

“We all paid them the deposit and stamp duties and now we hear they’ve sold it without our existing contracts, after we’ve been waiting nearly four years for the land to settle, ” he said.

“We are absolutely shocked that this could happen in Australia, we did all the right things, it’s daylight robbery.”

The man also estimated $5m would have been paid in stamp duty alone for the contracts.

Another creditor who signed a contract in 2021 said he “feels cheated”.

“We feel cheated to be frank, they’ve sold all our assets.”

A meeting for affected creditors will take place on October 9 when a report is expected to be received from external administrators.

Representatives of Cyan Blue were approached for comment.

Originally published as Cyan Stone’s Clydesdale Estate in Marsden Park faces collapse, owes $40m to 149 creditors