A builder that specialised in knocking down old houses is being liquidated with more than $3million in debt – and 45 unfinished homes – after having its licence suspended.
Ansa Homes, a Sydney-based family business established in 2006, has collapsed after Building Commission NSW suspended its contractor licence for 60 days, following complaints from customers about defects.
The shareholders appointed insolvency firm Jirsch Sutherland on Tuesday, after the state government agency stopped it from trading, leading to the retrenchment of 20 builders.
The five office-based staff had been working from home since June, following an earlier licence suspension, finishing administrative tasks until the liquidators were appointed.
Ansa Homes had stopped building houses two months ago with a spokeswoman for the liquidator telling Daily Mail Australia it owed creditors more than $3million, including to the tax office, as 45 homes were left still under construction.
‘The major catalyst was the building licence suspension, which resulted in cash flow issues,’ she said. ‘Staff have been stood down.’
Building Commission NSW had initially suspended its licence in June.
But on August 20 it told Ansa Homes chief executive Mark Maloney to ‘show cause’ as to why disciplinary action shouldn’t be taken against him.
A new 60-day suspension was issued, which wasn’t due to be lifted until October 19.
A builder that specialised in knocking down old homes and replacing them is being liquidated after having its licence cancelled
‘Building Commission NSW is monitoring ANSA’s ongoing insolvency proceedings,’ a spokesman told Daily Mail Australia.
‘A notice to show cause gives an entity or individual the opportunity to make submissions as to the reasons why they believe disciplinary action should not be taken against them.
‘The most recent 60-day suspension to the company’s contractor licence as well as to Mr Maloney’s contractor licence supersedes those previously issued.’
Once a company enters liquidation, owners are able to make a claim through the Home Building Compensation Fund.
The home builder, based at Edmondson Park in south-west Sydney, wasn’t taking customer calls on Thursday on its main sales number.
Disgruntled customers have anonymously posted a series of complaints on Reddit about the company that did knockdown, rebuild projects.
‘We had a knock down rebuilt with Ansa it was a nightmare,’ it said.
‘If you have issues with Ansa, stand up for yourself and don’t listen to their BS and gaslighting.
‘Contact the building commission ASAP. Do not wait, take action straight away.’
Ansa Homes had marketed itself as the builder of ‘architecturally inspired, custom design homes tailored to suit your family’s needs’.
Ansa Homes, a family business established in 2006, has collapsed after the New South Wales Building Commission suspended its licence for 60 days, following complaints from customers about defects
‘Building with Ansa Homes will bring you a level of certainty that is hard to find in today’s uncertain construction market,’ its website said.
Ansa Homes had also heavily promoted granny flat designs, with the company capitalising on NSW changing the law in 2009 to allow granny flats to be added to homes on blocks larger than 450 square metres.
Mr Maloney appeared in a 2019 video selling the idea of having grandparents living next to their grandchildren in complete separation.
‘They maintain complete separation: they’ve got a separate barbecue area, they’ve got a separate alfresco/outdoor area, separate kitchens, separate bathrooms,’ he said. ‘Also, if they need help, you’re right next door.’
The Australian Securities and Investments Commission on Wednesday announced a general meeting the day before had resolved to wind up Ansa Homes and appoint Jirsch Sutherland partners Peter Moore and Andrew Spring as liquidators.
‘Peter and Andrew are currently undertaking investigations into how many homes have been completed and/or are under construction by the company, as at the date of their appointment,’ the spokeswoman for the liquidator said.
The company’s assets are being sold in a bid to repay creditors, including customers who had homes under construction.
The liquidation is occurring after construction cost increases had moderated.
Chief executive Mark Maloney appeared in a 2019 video selling the idea of having grandparents living next to their grandchildren in complete separation
While building companies make up a quarter of insolvencies, building costs during the last financial year rose by just 2.6 per cent, a level well below inflation and marking the slowest annual increase since 2002, the CoreLogic Cordell Construction Cost Index showed.
The initial surge in building costs after Covid had coincided with the Reserve Bank raising interest rates 13 times in 2022 and 2023.
The most aggressive pace of monetary policy tightening since the late 1980s has taken the cash rate to a 12-year high of 4.35 per cent, with Reserve Bank Governor Michele Bullock this month ruling out any relief for borrowers before Christmas.
Daily Mail Australia contacted Mr Maloney, the NSW Building Commission and the iCare government agency in charge of home insurance policies.
Ansa Homes customers are advised to call Building Commission NSW on 13 27 00 for help and support
***
Read more at DailyMail.co.uk