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

One of the many victims of controversial property development company Toplace has claimed he’s been left in financial ruin after the company suddenly collapsed.

Voluntary administrators were appointed to the company’s building arm on July 7, while its founder Jean Nassif is overseas, wanted on fraud-related charges.

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

Its downfall is expected to impact thousands of apartment buyers and contractors across Sydney with several projects currently under construction.

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

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

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

‘When I bought I had no idea about any potential issues, most buildings have a couple of rendering problems, but it’s nothing that can’t be fixed,’ he told Daily Mail Australia.

‘But in about August of 2021 we got an engineering report that basically referred to the building as a death trap.

‘The best way to explain it is everything that could’ve gone wrong in terms of construction, went wrong.’

Defects include issues with the slab and beams in the basement, the report of the BWRO says.

Several props have also been placed in the building’s basement.

Toplace founder Jean Nassif (pictured with wife), is believed to have fled overseas and is wanted by NSW Police over fraud-related charges

Mr Quintal also claimed balcony walls have cracks throughout, while his balcony floods whenever it rains.

‘The flooding reaches my apartment door and I just sit there and hope the rain stops,’ he said.

‘The water has been close to reaching my apartment a couple of times.’

He also said one of the building’s waterproofing membranes was ‘completely dysfunctional’.

Mr Quintal’s quarterly strata levy has also jumped from $900 a month to $4,000 – the majority of which is going towards insurance.

He guesses he’s paid $22,000 to strata levies within the past 12 months alone, taking in ‘special’ levies relating to building rectification orders.

But making matters worse, Mr Quintal said no insurance company within Australia would insure the building so owners had to get the assistance of one overseas, 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.

Mr Quintal lives in the Vicinity Apartments complex in Canterbury, which is allegedly riddled with defects (pictured are props holding up the building)

‘For me it was always on the cards that Toplace was going to go belly up,’ he said.

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

‘When 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 guessed the total cost of the repairs will be $50million and with 276 units, owners are looking at a cost of over $180,000 each.

‘I can’t sell the apartment, I can’t refinance or get another mortgage, especially given how interest rates are,’ Mr Quintal said.

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

A court case with Toplace over defects within the Vicinity Apartments precinct has been ongoing, but Mr Quintal says due to repeated delays, the cost of repairs has now fallen on the owners.

‘The court case is still proceeding so the debts aren’t considered owed, and us as owners are classified as unsecured creditors which I imagine puts us at the bottom of the list,’ he said.

‘The situation is dire. I’ve seen four separate units that have had to foreclose. There’s a unit I can see from where I live that had a sign on it that said the bank has repossessed it.

‘This is going to get much worse for anyone here. I can’t get any of this money back, none of it is recoverable. It’s an active money sink.’

Antony Resnick and Suelen McCallum of DVT Group were appointed as voluntary administrators.

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 a number [of projects] at varying stages, and lots of land holdings,’ he earlier told the Australian Financial Review.

‘Whether these are completed by administrators or sold off has yet to be decided.’

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

Mr Quintal said he’s spent thousands of dollars on strata levies for the building

Mr Resnick said out of the creditors were about 40 employees, the Sydney Morning Herald reported.

Buyers who bought apartments with Toplace off the plan may see their developments sold to other companies in the event the company went into liquidation.

But he warned it may not be good news for those taking the company to court over defects as they may have to discontinue proceedings.

The company said it had suffered ‘operational difficulties’ like other builders in the post-lockdown period, due to staff shortages and the soaring price of materials.

‘Senior management is working closely with the VAs (voluntary administrators) to achieve the best possible outcome for its stakeholders, especially the creditors and our consumers,’ Toplace said in a statement.

‘We anticipate that through this process in time that all creditors’ debts will be met in full.

‘Contrary to media commentary no bank has ever lost any money financing Toplace Group projects. Toplace Group has an extensive property portfolio which will be realised throughout this process to satisfy the obligations to creditors.

The unit owner claims many of the balconies at the unit complex have cracks in them, and flood when it rains

‘Toplace is confident that with control being under the expertise of the VAs it will be in the best shape to navigate through these challenging times.’

NSW Police last month issued an arrest warrant for Nassif over allegations a $150million 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 earlier applied to review a NSW Fair Trading decision to suspend his licence for 10 years and permanently ban Toplace from engaging in construction work.

Fair Trading found both Nassif and his firm had engaged in improper conduct.

The operational ban was temporarily lifted to enable the company to finish remediation works on several apartment blocks, but last week it was reinstated.

NSW Fair Trading said its disciplinary action to cancel and disqualify Toplace’s contractor licence remains in force, along with any building work rectification orders and other orders issued.

‘Any Owners Corporations, suppliers, trade contractors or other persons who believe they have claims against Toplace should make contact with the Administrator to register as an unsecured creditor,’ their advice reads.

‘You will need to complete and provide to the Administrators a ‘Proof of Debt’. This will ensure your claim against Toplace is recorded and you are provided with any notices or other communications given by the Administrator to creditors.’

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

NSW Premier Chris Minns addressed the issue on Wednesday, and called for Nassif to come forward to authorities.

‘I know that the building commissioner is working with the tenants’ associations in New South Wales, as well, for those that have already bought or moved into a Toplace property,’ Mr Minns said.

‘We need to allow those administrators to undertake their work and determine what the full scale of the financing of the organisation is, as well as whatever potential damages there are on what we think are about 10 properties in New South Wales that they’re looking at.

‘There are many creditors and law enforcement agencies that are keen to speak to Mr Nassif, I would encourage him to make himself available to investigators in New South Wales so that we can find out exactly what he’s done in this state and what his potential liabilities are.’

Toplace has been contacted for further comment.