St Hilliers’ ‘shoddy’ work left Oaks resort at The Entrance apartment owners $10.5 million out of pocket
A COMPANY which won a government contract this month to build on Gosford waterfront has been accused of leaving Central Coast apartment owners $10 million out of pocket for work in 2003.
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THE company which won a lucrative State Government contract this month to build on Gosford waterfront has been accused of “ruining” the lives of dozens of Central Coast apartment owners after leaving them more than $10 million out of pocket for “shoddy” work in 2003.
An Express Advocate investigation has uncovered the devastating mess left behind on the Coast when St Hilliers Group last built in the region.
The company recently paid $9.5 million for 1.1ha at 32 Mann St, Gosford, to develop a mixed-use commercial building which will house 300 NSW Government finance workers.
When St Hilliers went into voluntary administration in May 2012, it left 150 apartment owners at Oaks Waterfront Resort at The Entrance with a $10.5 million bill to fix structural defects, causing several to go bankrupt themselves and the rest “broken-hearted”.
Photos taken by the Express Advocate this week show the landmark building’s back section riddled with rust, cracks in walls, paint peeling off and blistering around balconies.
Property managers say many bought the mostly studio and one-bedroom apartments for $360,000 off the plan in 2003, but are now worth little more than $110,000.
The latest $3.7 million rectification works — which come after stages 1 and 2 cost $6.8 million — will begin in July and, rubbing salt into the wounds of apartment owners, are expected to run into early next year, taking a big chunk out of Christmas holiday rentals.
St Hillers’ return to the Coast has left Oaks apartment owners including Jenny and Simon Anderson — who have put retirement plans on hold to keep paying special levies for the repair works — “fuming” and “bloody disgusted”.
“It’s been very draining, emotionally and financially, and a massive nightmare for all the owners,” Mrs Anderson, 62, said.
“None of us can believe St Hilliers has the hide to come back to a region where they caused so much distress and financially ruined so many people. They oversaw some really shoddy work, and we’re still paying for it.”
St Hilliers — which prides itself on “quality and going the extra mile” — collapsed with debts of $117 million in May 2012.
Six months later, St Hilliers emerged from voluntary administration with a deed of company arrangement, allowing it to continue trading under the control of its founder and sole director.
Strata managers for the Oaks resort say the owners were locked in legal proceedings with the company before it went into voluntary administration.
They say the body corporate had a $10.5 million claim against St Hilliers, but only received a creditors’ cheque for about $15,000.
“Some of the (150) lot owners have since been stung in the six-figure range, but most are out of pocket around $70-80,000,” Michael Price, general manager of Whelan Property Group, said.
St Hilliers spokesman said it would not reimburse Oaks apartment owners for the full cost of rectification works.
In a statement, it put the heat on the developer — a separate company — which the Express Advocate understands was wound up in 2011.
“When (the developer) went into liquidation the body corp (sic) then sought to sheet home its complaints to the builder (St Hilliers Construction), which denied liability,” the spokesman said. “The body corporate’s claim was dealt with during the voluntary administration period and has now been resolved.”
The company says it is “competitive, but not compromising with the flexibility and mobility to pursue projects where our client needs us”.
“Our depth as a business allows us to adapt to changing environments and project challenges with the sole focus on exceeding our clients expectations and delivering a safe and successful project every time,” it says on its website.
A spokesman for NSW Finance Minister Victor Dominello said St Hilliers won the tender to build on Gosford waterfront after a “rigorous” two-stage process.
“The Government is confident St Hilliers will deliver a development that will realise the Government’s vision for a mix of uses that will revitalise the 32 Mann St site, including generous public open space, residential and retail outlets including cafes, restaurants and parking,” the spokesman said.
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However, Oaks apartment owners are less confident about St Hilliers’ ability to deliver a “quality” product.
“The company is an absolute disgrace,” Mrs Anderson said.
“All the owners didn’t want to go to the press about this years ago because we were worried about the damage it would do to Oaks’ reputation. But St Hilliers needs to be exposed now for overseeing such shonky work.”
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