Westpac wins bid to block sale of Bill Papas Rozelle home and yacht linked to Forum Group

Westpac has blocked the $3m discount sale of Bill Papas’ Rozelle residence, and a motor yacht in Miami can’t be offloaded either.

The Rozelle residence of Forum Finance managing director Bill Papas.

Freezing orders against Forum Finance figure Vincenzo Tesoriero have been widened and the former Forum director barred from selling the Rozelle, Sydney residence of business partner Bill Papas.

The Federal Court orders come after Westpac filed an urgent application against Mr Tesoriero after the bank grew concerned he was seeking to sell the house in Rozelle for far less than he paid.

The bank had also become increasingly aware of Mr Tesoriero’s assets outside Australia, including a motor yacht in Miami.

The XOXO yacht had not been declared in an affidavit of assets submitted to the court.

Justice Michael Lee ordered “without admissions” that freezing orders be varied and extended.

Westpac’s senior counsel Jeremy Giles said the bank had “some anxiety” over Mr Tesoriero’s disclosures.

Mr Giles said Mr Tesoriero had not disclosed the XOXO yacht claiming it “was not required because it was not an Australian asset”.

This is despite the yacht being owned by an Australian corporate entity, Mr Giles argued.

“We don’t think that’s right. But that’s why we now have worldwide freezing orders,” Mr Giles said.

Justice Lee also ordered that Mr Tesoriero, on behalf of himself and the corporate entity that owns the 23 Margaret Street property in Rozelle, “not take any further steps to market or sell the Property”.

The house in Rozelle had been the residence of Mr Papas.

The Rozelle residence of Forum Finance managing director Bill Papas.,

Justice Lee also ordered that Mr Tesoriero provide access to a valuer nominated by Westpac to inspect the property.

Westpac told the court Mr Tesoriero was seeking to sell the Rozelle house at an advertised price of $3m.

This is despite purchasing the property in 2018 for $4.1m.

When The Australian visited the Rozelle house, evil eye charms which had been placed on the doors had been removed, but boxes and household items were still strewn around the side of the property and no for sale signs were in place.

Justice Lee noted the curious price to sell the property, asking why “this property has not done what every single property in Sydney” had in recent years.

“It must be the only house in Rozelle that has stayed at that value,” he said.

Westpac had proposed the house would be worth between $4.3 and 5m.

A CoreLogic report puts a $4,675,000 estimated value on the Rozelle property, noting a range of $4.16m to $5.19m.

“It rings alarm bells in my mind if the value of real property in Inner West of metropolitan Sydney, which was purchased for $4.1m, is said to retain that price given what’s happened in the property market in Sydney over the course of the last three and a half years,” Justice Lee said.

However, Mr Tesoriero’s lawyer, Greg McNally SC, instructed by Fortis Law Group, said his client had acted appropriately.

“He has kept Minter Ellison fully informed of the proposed sale and it was the agent who set a guide which was revised upon request from my camp and he’s happy for the property to be sold at arm’s length at the best possible price,” he said.