Bondi: Developer ordered to fix serious defects at Ebley St site after building watchdog inspection

Cracks, water leaks, and mould which left one unit ‘uninhabitable’ were among the scenes that confronted building inspectors at a newly-built $17m apartment complex in Bondi.

Twelve separate defects have been uncovered in the newly built development.

A newly built apartment complex in Bondi Junction has come under scrutiny from the state’s building watchdog after a string of serious defects including cracks were discovered at the site.

Fair Trading NSW has issued a building rectification order to the developer of 73-89 Ebley Street after an inspection uncovered 12 separate issues relating to structural systems, waterproofing, fire safety, and essential building services.

Records show the $17m development was approved by the Land and Environment Court in 2017 and is currently occupied by tenants.

An inspection report released by Fair Trading last week showed the defects included uncontrolled cracking of 2mm to 4mm in the basement slabs and soffits of the building.

One unit had been vacated and was “deemed uninhabitable” due to excessive mould conditions caused by the inadequate waterproofing.

A photo of the development. Pictures: Realestate.com.au

There was also evidence of water penetrating into habitable areas of numerous units.

Several units that were inspected had evidence of waterlogged carpets, water damaged floors and staining to skirting.

A photo of one of the units inside the recently built development.

There was evidence of damage to plasterboard linings in numerous units due to water penetration from the roof of the building.

Fire standards were another area of concern including door jambs had not been adequately core filled in the building’s fire stairs and some units.

Water was also seen penetrating into the basement of the building, and there was no natural or mechanical ventilation serving the building’s main switch room.

The rectification order was issued to developer 89 Ebley Street Pty Limited on Thursday and will remain in place until revoked by Fair Trading NSW.

NSW Building Commissioner, David Chandler. Picture: Gaye Gerard.

NSW Building Commissioner David Chandler has set a six-month deadline for the defects to be fixed.

“I accept that the order requires considerable further construction work that is likely to be costly. However, the cost to the developer must be balanced against the benefit to the occupiers of the units which comprise the building in having the building constructed to the approved plans and in accordance with the Building Code of Australia.”

Fair Trading stated 89 Ebley Street Pty Ltd had “accepted that the defects are serious defects” and had engaged an external consultant to project manage rectification works.

ASIC records show Sam Arnaout – who is also the chief executive of hospitality group Iris Capital – is the sole director of 89 Ebley Street Pty Ltd.

The development – also known as ‘Grand Bondi Junction’ – is located directly above the Grand Hotel, which is also operated by Iris Capital.

The development was approved in the Land and Environment Court.

A spokesman for 89 Ebley Street Pty Ltd said the builder of the development had gone into liquidation in March 2022, leaving Iris Capital to rectify any defective work it performed.

“Iris Capital has engaged external consultants, remediation builders, regulated designers, an external project manager and experts to identify all defects and formulate the best scope of works to rectify them.

“The Owner’s Corporation, which Iris Capital has been proactively engaged with, is currently considering the recommendations made by Iris Capital’s experts as to the remediation methodology.

“Because the site is occupied, arranging access and undertaking investigative works has not been straightforward, however Iris Capital is confident that this work is close to being finalised and looks forward to commencing work to rectify all defects for the owners as soon as possible.

“Put simply, Iris Capital has stepped up to do everything it can to resolve the issues left behind by the builder and will continue to stand by its development and do the right thing by the owners.

“Iris Capital has recently received the building rectification order which it is considering in detail to determine whether there is further work required over and above what has been proposed already.”

It is understood the owners corporation of the building has also commenced legal proceedings against 89 Ebley Street Pty Ltd in relation to the serious defects identified by Fair Trading.

The units are advertised by listing agents as a “boutique block” offering a mix of one, two and three bedroom “luxury apartments”.