Toplace collapse: Victims of Jean Nassif’s company speak out as they’re left in financial ruin

One of the many victims of controversial real estate development company Toplace has claimed to have been left in financial ruin after the company suddenly collapsed.

Volunteer trustees were appointed to the company’s construction department on July 7, while founder Jean Nassif is wanted abroad on fraud charges.

Toplace Group has been described as one of Australia’s largest privately owned development and construction companies with 30,000 buildings in Sydney.

The demise is expected to affect thousands of apartment buyers and contractors across Sydney, with several projects currently under construction.

One of them is IT manager Patrick Quintal, who owns and lives with his wife in a unit in the troubled Vicinity Apartments in Canterbury, Sydney’s west.

The building is reportedly riddled with defects with the NSW Building Commissioner issuing a Building Work Rectification Order (BWRO) on July 7 and last August.

Mr. Quintal bought the apartment in May 2021 for $600,000 and moved in at the end of July.

“When I bought it I had no idea of ​​any potential issues, most buildings have a display or two issues but it’s nothing that can’t be fixed,” he told Daily Mail Australia.

“But around August 2021, we got a technical report that essentially referred to the building as a death trap.

“The best way to explain it is that everything that could have gone wrong constructively has gone wrong.”

Defects include issues with the slab and beams in the basement, the BWRO’s report said.

Several props are also placed in the basement of the building.

Mr Quintal also claimed that balcony walls have cracks all over, while his balcony floods when it rains.

“The flood reaches my apartment door and I just sit there and hope the rain stops,” he said.

“The water almost reached my apartment a few times.”

He also said one of the building’s waterproof membranes was “completely dysfunctional.”

Mr. Quintal’s quarterly strata levy also increased from $900 a month to $4,000 — most of which goes to insurance.

He estimates he paid $22,000 in strata levies in the past 12 months alone, accounting for “special” levies related to construction rectification orders.

But to make matters worse, Mr Quintal said no insurance company in Australia would insure the building, so owners had to enlist the help of a foreign one, but their policy doesn’t cover the defects.

Mr Quintal said the BWRO has now fallen on the owners given the recent collapse of Toplace.

“For me it was always on the agenda that Toplace would get into trouble,” he said.

“I’m just surprised the government hasn’t done anything.

“If you buy an apartment close to the CBD, you expect it to be safe and you can live there.”

The Department of Fair Trading has estimated the total cost of the repairs will be $50 million and with 276 units, owners are looking at a cost of more than $180,000 each.

“I can’t sell the apartment, I can’t refinance or get a new mortgage, especially given the interest rates,” Quintal said.

And the looming threat of having to pay $180,000 per person. It’s financial suicide. I can’t even move and rent somewhere, and I’m already struggling to pay off the mortgage.”

A lawsuit is pending with Toplace over defects in the Vicinity Apartments precinct, but Mr Quintal says that due to repeated delays the repair costs have now been borne by the owners.

“The lawsuit is still pending, so the debts are not considered due, and we as owners are classified as unsecured creditors, which I think puts us at the bottom of the list,” he said.

‘The situation is dire. I’ve seen four separate units that had to be shielded. There is a unit that I can see from where I live that had a sign saying the bank had repossessed it.

“This is going to get much worse for everyone here. I can’t get any of this money back, none of it can be reclaimed. It’s an active money grab.’

Antony Resnick and Suelen McCallum of DVT Group were appointed as volunteer trustees.

Mr Resnick said it was too early to guess how much money was owed to creditors, or how many apartment owners have been affected.

‘There are several [of projects] in different stages, and a lot of land holdings,” he previously told the Australian financial statement.

“Whether these will be finalized by administrators or sold has yet to be decided.”

Creditors are expected to meet for the first time next week.

Mr Resnick said that among the creditors were about 40 employees, the The Sydney Morning Herald reported.

Buyers who have purchased off-plan apartments with Toplace may see their developments sold to other companies in the event that the company goes out of business.

But he cautioned that it may not be good news for those taking the company to court over defects, as they may have to drop the proceedings.

The company said it, like other builders in the post-lockdown period, had “operational difficulties” due to staff shortages and skyrocketing material prices.

“Senior management works closely with the VAs (voluntary administrators) to achieve the best possible outcome for its stakeholders, particularly the creditors and our consumers,” Toplace said in a statement.

“We expect that all debts of creditors will be paid in full on time through this process.

‘Contrary to media claims, no bank has ever lost money financing projects of the Toplace Group. Toplace Group has a sizeable real estate portfolio that will be realized during this process in order to meet the obligations towards creditors.

“Toplace is confident that, with control under the expertise of the VAs, it will be in the best shape to navigate these challenging times.”

NSW Police issued an arrest warrant for Nassif last month over allegations that a $150 million loan from Westpac was obtained using fraudulent pre-sale documents for an apartment complex in Castle Hill.

The 55-year-old left the country on December 22.

He had previously applied to review a NSW Fair Trading decision to suspend his license for 10 years and permanently ban Toplace from carrying out construction work.

Fair Trading found that both Nassif and his firm had engaged in inappropriate behavior.

The operating ban was temporarily lifted to allow the company to complete cleanup works on several apartment buildings, but it came back into effect last week.

NSW Fair Trading said its disciplinary action to cancel and disqualify Toplace’s contractors license remains in effect, along with any construction rectification orders and other orders issued.

“All owners, companies, suppliers, trade contractors or other persons who believe they have claims against Toplace should contact the administrator to register as an unsecured creditor,” they advise.

‘You must complete a ‘Proof of Debt’ and provide it to the Administrators. This ensures that your claim is registered against Toplace and that you receive all notices or other communications made to creditors by the administrator.’

For those buying off the plan, they are also advised to contact administrators to register as unsecured creditors.

NSW Prime Minister Chris Minns addressed the issue on Wednesday and called on Nassif to report to authorities.

“I know that the Building Commissioner is also working with the New South Wales tenant associations, for those who have already bought or moved into a Toplace property,” Mr Minns said.

“We need to allow those trustees to do their job and determine the full extent of the organization’s funding, as well as any possible damage to what we believe is about 10 properties in New South Wales to which they are looking for.

“There are many creditors and law enforcement agencies who would like to speak to Mr. Nassif. I would encourage him to make himself available to detectives in New South Wales so that we can find out exactly what he has done in this state and what his possible liabilities are. Are.’

Toplace has been contacted for further comment.