Failed builder Toplace owes $200m; 20,000 homeowners hit

Administrators of failed construction giant Toplace face unravelling a complex network of more than 70 companies that owe up to $200m to creditors.

Sydney property development Jean Nassif places several of his companies into receivership

Failed construction giant Toplace owes an estimated $200m with 20,000 home owners caught up in one of the country’s biggest building company collapses.

Creditors of the property empire founded by embattled developer Jean Nassif met Wednesday for the first time amid fraud allegations now being probed by NSW police.

Antony Resnick and Suelen McCallum of DVT Group were last week appointed voluntary administrators of Sydney-based Toplace after months of financial uncertainty over the future of the group. Creditors at the meeting at Sydney’s Drummoyne Oval were told more than 75 entities in the Toplace group owe about 500 creditors, including subcontractors and tradespeople, an estimated $200m.

“We recognise the significant number of people and businesses directly or indirectly impacted as a result of this administration process,” said Mr Resnick.

“We have a team focused on building a comprehensive understanding of Toplace’s current financial position and future options – that is the priority.”

Toplace is one of Australia’s largest privately owned building, construction and property development companies. Founded in 1992, it has been responsible for building approximately 30,000 residential homes, shopping centres and commercial suites all located in Sydney.

High profile property developer Jean Nassif.

According to its website, the company has “a multi-billion dollar development pipeline and a team of thousands of property and construction trades, suppliers and consultants.” Lebanese-born Mr Nassif is now believed to be living overseas as police ramp up efforts to track down the mogul amid fraud allegations.

DVT administrators said Toplace may well be among one of the largest property collapses in Australia’s history, “We are barely one week into our process but we know there are more than 500 secured and unsecured creditors across at least 75 entities,” they said.

“We are looking at assets and liabilities well in excess of $1 billion. We understand up to 20,000 homeowners could be impacted in over 20 buildings.”

DVT were aware there were suppliers, home owners, lenders and thousands of others “impacted right now and facing uncertainty.” “Our focus is totally on getting answers in what will be a complex process in the coming months,” they said

Detectives from the NSW Police organised crime squad earlier this month were granted an arrest warrant for Mr Nassif in relation to fraud allegations. Police believe the 55-year-old, who is the founder of Toplace, has not been in the country for months. Strike Force Calool was established in April 2021 to investigate alleged financial crimes.

Sydney property development Jean Nassif places several of his companies into receivership

The company has faced growing financial pressure in recent months and in December was

hit with a 10-year building licence suspension after an investigation by the building watchdog into its properties allegedly uncovered 40 building defects across sites in Castle Hill, and Canterbury. Defects identified in the firm’s 276-apartment building in Charles St, Canterbury, included inadequate drainage resulting in uncontrolled water entering the carpark, balustrades not adequately secured and fire sprinklers obstructed by pipes. It also identified several roof slabs that had not been sufficiently reinforced to support current and future anticipated loads.

One resident last month reported “cracking sounds” in another Sydney apartment complex constructed by Toplace Group triggering an urgent building inspection.

The failure of Toplace comes as the number of corporate insolvencies soared by 62 per cent in the year to June with fears of more pain ahead for Australian businesses as the economy teeters on the brink of a recession. ASIC figures reveal that 7943 Australian companies fell into administration, liquidation or receivership in 2022-23, up from 4912 in 2021-22, and the highest number of business failures since 2018-19.