Building headache for Jean Nassif as Westpac blocks more funding

A big lender bankrolling controversial builder Jean Nassif has refused to provide him with any more cash. At stake is the ambitious five-tower Skyview development at Castle Hill.

• Jean Nassif: Migrant to millionaire property developer

One of the two lending institutions bankrolling builder Jean Nassif’s troubled apartment towers has blocked any further funding after claims the developer’s company was in a “very serious breach” of its contract and could be “in default”, a tribunal has been told.

At stake is the ambitious five-tower Skyview development at Castle Hill, funded by Westpac Bank, with two towers completed and three towers with 536 residential apartments still under construction.

The bank could take possession of the development as could fellow lending giant PAG which is backing building behemoth Toplace’s 660-apartment Box Hill tower and shopping complex, the NSW Civil and Administrative Tribunal has been told.

At the same time, Toplace is working on three refinancing deals for various of its developments, the tribunal was told.

The multi-million dollar moves began last year, before Ashlyn Nassif, the embattled property developer’s lawyer daughter, was arrested last week accused of fraud amid allegations she supplied fake contracts to secure a $150 million loan from Westpac to help her father build the Skyview project.

Toplace property developer Jean Nassif could have his Skyview development seized by Westpac and PAG, a tribunal has been told.

Jean Nassif, 55, the founding director of Toplace, has not been charged with any criminal offence.

Ashlyn Nassif, 28, managing partner of EA Legal, was granted bail charged with dishonestly obtaining a financial advantage by deception and publishing false or misleading material to obtain advantage.

Property and Construction lawyer Ashlyn Nassif, 27, daughter of Mr Nassif, leaves Surry Hills Police on bail with her lawyer. Picture: David Swift

Her father is still overseas either in Lebanon or the Philippines recovering from what he has said is a medical procedure.

Downing Centre Local Court was told last week that Ashlyn Nassif, listed on company documents as an alternate director of Toplace, had “deceived” Westpac by submitting at least $10.5m in fake “pre-sale” contracts for more than a dozen apartments in the Skyview complex to secure $150 million finance from the bank.

Lawfully intercepted telephone conversations, police alleged, recorded Jean Nassif saying the contracts were “fake”, “never going to be completed anyway” and that the deposits were his own money, court documents state.

In separate civil proceedings, Toplace’s lawyer Gregory Bernard Wee told the Civil and Administrative Tribunal late last year that each of the finance arrangements for the Skyview and Box Hill development’s were “at risk”with Westpac and PAG.

Nassif with his model/actor wife Nissy Nassif.

That case involved an appeal by Jean Nassif and Toplace against a decision by the Commissioner for Fair Trading to “permanently” cancel Toplace’s development licence and ban Nassif for 10 years from holding a building licence. The tribunal granted them a stay of proceedings to complete the two developments and carry out remedial work but they are not allowed to start any new projects.

The tribunal was told that 86 contracts with a total value of $74,075,887 had been exchanged but not settled for the Skyview and Box Hill developments and another 64 sales contracts worth $48,330,450 had been exchanged and a reserve deposit paid across other developments.

Mr Wee, who works for EA Legal, told the tribunal that both Westpac and PAG required sale milestones to be completed before funding could be drawn down which was then used to pay Toplace.

A proposed look at the Skyview development in Castle Hill.

Toplace then used that money to pay its contractors, which concerned the lenders.

“Westpac has asserted that the Toplace decision constitutes an event of default under the finance facility and regards the Toplace decision as a very serious breach,” the tribunal said in its judgment.

“Westpac advised that they would not be honouring any drawdowns of further funding under the Skyview finance facility.

“In respect of PAG, they regard the Toplace decision as a very serious breach and will be referring the matter to its senior credit committee to determine the consequences of the Toplace decision.”

Toplace chief financial officer John Pettigrew told the tribunal that it was open to the financiers to “formally declare that the borrowers are in breach of their respective finance facilities, terminate the facilities and take possession of the current development sites”.

Chief Toplace defects manager Craig Sammut told the tribunal that there were approximately 5171 units in the company’s developments with reported defects, of which 899 were either being repaired or pending repair and 530 units already had defects repaired.

A spokesperson for Westpac said: “Westpac has assisted NSW Police with their inquiries and is unable to comment while the matter is before the courts. Any Westpac lending remains well secured against real estate assets.”

PAG said on Monday it had no comment to add.