Lenders set to sell Toplace assets after Sydney developer collapse

Major lenders are set to sell more than $500 million worth of Sydney housing development projects as a fugitive property developer’s empire falls apart.

More than $500 million worth of Sydney housing development projects are set to hit the market as fugitive property developer Jean Nassif’s empire crumbles.

The Sydney Morning Herald reports thousands of apartment owners living in Toplace buildings are concerned that there will be no money left to fix millions of dollars worth of defects as major lenders move to sell Toplace assets to recoup their losses.

“The owners’ worst fear … is that any legitimate claim or opportunity to claw back funds for defective work is gobbled up by secured creditors,” said a source close to one of the owner’s corporations told the publication.

According to the SMH, court documents revealed Mr Nassif’s collapsed property empire has debts of more than $1.24 billion, including $88.5 million to suppliers and tradespeople.

A source close to one of the lenders told the publication that, having taken control of the assets, the receivers are preparing to go to sale and “that process is expected to commence soon”.

The lenders are also concerned that they will be charged default penalty interest rates of up to 30 per cent now that Toplace has gone into administration.

Toplace property developer Jean Nassif.

In March, insolvency firm KordaMentha was appointed as the receiver and manager of the firms run by Jean Nassif.

The companies are responsible for the giant Skyview apartment complex in Sydney’s north west.

Tenants were initially barred from moving into the 900 unit block built by Mr Nassif in Castle Hill after signs of cracking were found in the complex’s basement.

Mr Nassif is listed as a director of both 51 OCHR and JKN Finance which are the owners and developers of the Skyview towers. Toplace was the builder of Skyview.

Artist impressions of the Box Hill City Centre residential and retail precinct by Toplace in Sydney's north west.

Skyview apartment complex in Castle Hill, in Sydney’s north west.

Last month it was revealed, Mr Nassif’s building firm Toplace Pty Ltd had collapsed into administration with ASIC.

The company filed for voluntary administration through lawyers in contact with Mr Nassif.

Antony Resnick and Suelen McCallum of insolvency firm DVT Group are the appointed administrators.

They are only in charge of the building arm of Toplace Group, not any of the other streams of the business.

News.com.au contacted them for comment.

Toplace Pty Ltd has been in operation since 1992 and claims to have built 30,000 abodes over those years, including residential houses and apartments, shopping centres and commercial offices.

The firm reportedly has not been able to function as a company for some time after losing its building licence due to failing to fix serious defects at a Sydney apartment complex.

The NSW Civil and Administrative Tribunal (NCAT) stripped it of its licence after failing to comply with a court order.

NSW Police issued an arrest warrant for Mr Nassif in relation to fraud-related charges. Picture: NSW Police

In June, NSW Police issued an arrest warrant for Mr Nassif in relation to fraud-related charges.

Mr Nassif is understood to be living overseas.

Police believe the 55-year-old has not been in the country for months, since at least December.

Strike Force Calool was established in April 2021 to investigate his alleged financial crimes.

Detective Superintendent Peter Faux said in June that police were yet to engage overseas governments or law enforcement agencies in their search, but would do so after there was more clarity on where he could be.

“If he is offshore and overseas then we’ll commence the appropriate conversations with those people in relation to that,” he said.

“We’ve only just applied for the arrest warrant. We’re now looking at those options in relation to if he is offshore.”

Ashlyn Nassif allegedly supplied a bank with fake pre-sales contracts in order to obtain a $150 million loan. Picture NCA Newswire / Gaye Gerard

Meanwhile, Mr Nassif’s daughter, Ashlyn Nassif, has had her legal practising certificate suspended while she fights allegations she used fake contracts to secure a $150m loan.

The 29-year-old is accused of falsifying $10.5m in pre-sale contracts for the development of the $900m Sky View apartment complex in northwest Sydney.

The partner of law firm EA Legal was charged with dishonestly obtaining financial advantage by deception and publishing false or misleading material.

She was granted bail in March with $2.6m secured by her family.

Earlier this year, Mr Nassif was called to front a NSW parliamentary inquiry into allegations of impropriety at Hills Shire Council, but declined to attend as he said he would be in a remote part of Lebanon conducting business and recuperating from a medical procedure, and had intended to be overseas until March 2023.

- with NCA Newswire

Originally published as Lenders set to sell Toplace assets after Sydney developer collapse