<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Asic

<html><body>
BDO never provided "any satisfactory explanation" as to why they did not adopt a "common-sense approach" on the issue of the return of $5 million in art and antiques caught in the Mossgreen administration, the Federal Court of Appeal has noted.
The now published judgement that admonished BDO came after BDO was thrawted in its attempt to impose a hefty fee on clients of the collapsed auction house, as they sought to recoup the $1 million in expenses undertaken without reference to the courts.
The initial judgement by Federal Court judge Nye Perram ruled the BDO administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers."
The <a href="https://propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/82443-meddling-bdo-appeal-federal-court-mossgreen-loss" target="_blank">BDO appeal indicated</a> that shortly after the appointment of the administrators to Mossgreen, BDO started to receive requests for the return of consigned items.
But instead of seeking directions at that point from the Federal Court about how the employees could be put to work using their specialist knowledge to deal with those requests and return the items to which Mossgreen made no claim, the administrators instead took alternate steps.
These included pursuing a costly stocktake of all consigned items irrespective of their value and whether they had been abandoned. BDO also sought a deed of arrangement or outright sale.
"There seems to be no reason why such requests for returns could not have been dealt with even while those other options were pursued by the administrators," the Federal Court of Appeal noted in today's published judgment.
While not agreeing to the entirety of Justice Perram's ruling, the judgement, signed off by the Honourable Chief Justice Allsop and Justices Banks-Smith and Colvin, reiterated the error in BDO's administration.
"A different course would have been to allow consignors to immediately make claims. 
"Directions could have been sought as to the process to be followed. 
"It may have involved the presentation by owners of statutory declarations, receipts, references to catalogues, descriptions of the items claimed (many of which, due to the nature of Mossgreen’s business, were unique in character and were amenable to ready description by identifying features) and release of items in accordance with usual processes followed by Mossgreen employees.
"Other steps could be taken to deal with items that were identified as having little value or had not been the subject of any claim for an extended period. 
"These steps, if presented to the court, could have been approved by way of directions or as part of a supervised process by which the administrators were appointed as receivers to the goods and many items could have been promptly released at much less cost," the judges ruled.
"No satisfactory explanation was provided as to why such a common-sense approach was not followed, or why it was not possible or not desirable or practicable," the judges noted.
The judges noted detailed affidavits provided by BDO administrator James White provided "no evidence" that he turned his mind to the extent to which the stocktake was needed in order to return most items to their owners (as distinct from providing the administrators with a complete list of all of the items held).
"There is no evidence of any thought process by which he considered the significance of the extent to which the items held were legacy items of little value, the extent to which the stocktake was necessary in order to deal with claims by owners, the extent to which the costs involved were proportional to the value of goods involved, and the likely cost to individual owners if the stocktake was undertaken."
"It is one thing to investigate the inventory management systems. 
"It is a different thing to consider how most efficiently to return the property of third parties to them. 
"The administrators were dealing with property to which the company had no claim," the judges adding the question was not whether Mossgreen had good inventory management systems but whether its existing systems could be used to promptly and cost-effectively return the consigned items to their owners."
The judges noted given that the BDO administrators sought directions after the event, in effect to approve the course that they have already undertaken, so then they must be able to demonstrate that they were justified in what they did.
It was initially estimated that Mossgreen held in excess of 10,000 items on consignment, held across three premises in Victoria, their High Street, Armidale premises, a site in NSW on Queen Street, Woollahra and a third party warehouse in Clayton, Victoria.
The goods were classified into the following categories:
1.    Items sold at auction prior to our appointment and not yet collected by purchasers;
2.    Unsold items of recent auctions held on consignment on behalf of vendors;
3.    Items held on consignment for future auctions;
4.    Items abandoned by purchasers and vendors;
5.    Items stored at the Company’s warehouse awaiting collection by vendors; and
6.    Artwork consigned to the Company to hang in the gallery.
The stocktake identified that Mossgreen retained 6,935 lots (or 4,663 lots excluding stamps and coins) on behalf of in excess of 800 consignors (or in excess 600 consignors excluding stamps and coins).
After including abandoned items, and allowing for the prospect that owners of such items were unlikely to make claims, the judges noted it could be seen that the extent of claims by individual owners to the return of individual items was not as overwhelming a task as BDO advised.
The total cost of the stocktaking exercise was $1,048,072. It comprised the following: wages of $240,747 as of the company’s 36 employees, after 19 were terminated in January 2018, the remainder were kept on.
An amount of $180,075 had been included for rent. An amount of $54,000 was included for insurance and $45,849 was included for security.
There was $122,605 allocated for the costs of engaging the Tiger stocktake company to undertake a complete stocktake of all consigned goods. 
Some $72,500 had been included for legal costs for obtaining advice as to consignor Tasks and seeking directions from the court.
Fes for the administrators were put at $126,551 and disbursements of $11,033 to 31 January 2018.
Actual administrator’s costs from 1 February 2018 to 16 March 2018 have been $200,715.
All of the above were based on estimates to 31 March 2018. 
James White noted that the ongoing cost of following the process that the administrators have adopted is $109,532 per week.
The judges noted that "to put the above estimates in context, Mr White says that he has estimated that Mossgreen held Consignor Property (being all of the property listed after the stocktake) in excess of $5 million in value.
"So, the steps that have been taken by the administrators have resulted in costs, which if charged to consignors, will substantially deplete the value of property to which the administrators lay no claim to at all."
Tye judges considered that there was potentially an entitlement to an equitable lien with respect to work properly done and expenses properly incurred that benefit a consignor by securing and protecting their property that is deposited at the company’s premises until it is returned under an efficient process proportional to the nature of the goods in question. 
"Whether equity would grant such lien and its extent may depend upon the value of the statutory lien and the particular circumstances of the administrators’conduct.
"We do not consider the administrators established a right to a lie as claimed and accordingly the grounds are dismissed
"The administrators have not demonstrated that they are entitled to a lien covering the type of costs and in the amount that they have asserted in their dealings with owners of the consigned items.
"There may be a lien in some amount that might arise in the circumstances of this case.
"However, the Court is now faced with an application for directions blessing conduct of a kind that is not justified on the basis of the nature and extent of the lien advanced to support the judicial directions sought. 
"Further, by reason of the conduct of the administrators in not seeking directions at an early stage when consideration might be given to all options, including issues of proportionality, the extent of any actual difficulties in dealing with the consigned items that might be redressed by the stocktake, the possibility of an appointment as receiver to the goods to implement a plan approved by the Court and an assessment of the likely costs before they are incurred, the Court is not now in a position to make that determination on the evidence presented to support the present application. 
"Owners have been held out of their consigned items for a considerable period and we question whether the administrators would be justified in delaying further the release of consigned items while there is some form of retrospective assessment of the amount of a lien that may be required to be paid as a condition of release of property to the owners."
The appeal should be dismissed, the judges ruled, with further aspects of the administration yet to be decided.
DB Studdy SC with RM Foreman, briefed by King &amp; Wood Mallesons represented BDO. Dr O Bigos, briefed by Piper Alderman, represented the aggrieved Mossgreen clients who have yet to be advised just when they will be able to retrieve what is rightfully theirs.
<div title="Page 5">
The names of the creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.
Melbourne veteran caterer Peter Rowland was caught amid the clients, with around $166,000 owed to the catering company.
</div>
<div title="Page 5">
Sydney's society Coppleson family were listed as owed $465,000, the third highest-owed creditor. Their Potts Point penthouse sold to Gretel Packer for $8.75 million.
</div>
 
</body></html>

jchancellor-FAypfDUnLy

BDO failed the "common sense" approach to Mossgreen inventory administration

<html><body>
ASIC has obtained orders from the Federal Court to wind up an illegal investment scheme known as the VKK Investments Unit Trust (VKK scheme), as well as the trustee and operator of that scheme, Gem Management Group Pty Ltd (Gem).
The principal asset of the VKK scheme is land located at 64 Hutton Road, Keysborough in Victoria (below).
Around 125 investors invested a total of approximately $22 million into the VKK scheme, which Gem operated since May 2010 on the expectation that the land at Hutton Road would be re-zoned, which has not occurred.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/keysb.jpg" alt="">
ASIC's investigation identified that:
<ul>
<li>the VKK scheme is a managed investment scheme which has not been registered, as required under the Corporations Act; and</li>
<li>Gem, which does not hold an Australian financial services licence, had also breached the Act by operating an unregistered managed investment scheme.</li>
</ul>
A number of investors in the VKK scheme were represented in the proceedings brought by ASIC and made submissions in support of ASIC’s application to wind up the VKK scheme and Gem. 
Robert Woods and Salvatore Algeri of Deloitte Touche Tohmatsu have been appointed as joint liquidators of Gem and joint liquidators and trustees of the VKK scheme. The liquidators will have management of the VKK scheme and the land at Hutton Road.
ASIC Deputy Chair Peter Kell said, "Today the Federal Court took action to wind up an unlawful managed investment scheme and its operator. The ruling is a warning to those involved in unlawful schemes, including those that involve land banking, that ASIC will move to protect investors and have these unlawful schemes wound up."
"Land banking schemes have been a particular focus of ASIC. ASIC reminds investors considering investing in  land banking schemes they are often unregulated and that investors have little protection if something goes wrong", Mr Kell said.
</body></html>

jrobinson-rf4aSBido9

Federal Court orders wind up of illegal Keysborough land banking investment

<html><body>
BDO has lost another judgement in the ongoing saga of its Mossgreen voluntary administration.
The Federal Court of Appeal knocked out it case this morning, with the reasons yet to be issued.
The return of art and antiques to their vendors/buyers is no sure thing, as the possibility of any unpaid rent could see the High Street, Armadale and Clayton landlords lock up the premises and hold the goods in the worst case scenario.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/courtorder.jpg" target="_blank">to enlarge. </a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/19/courtorder.jpg" alt="">
The matter related to BDO's administration of the Mossgreen goods and chattels, especially costs relating to their storage and insurance.
BDO had been seeking to charge clients of the collapsed auction house for the return of their goods.
Clients were furious at BDO's attempts to charge a fee – levied at $353 per lot – to have their own property returned, especially as some lots were going to cost more for their return that their actual value.
The initial judgement savaged the accountancy firm.
Federal Court judge Nye Perram ruled the administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers."
"Accordingly, they are not justified in requiring the consignors to pay a levy for the return of their goods," he ruled.
"In reaching this conclusion I have not disregarded what is sometimes referred to as the 'salvage' nature of the work done by external administrators or the concomitant need to ensure that persons are not deterred from doing such work in the future.
"But that well-founded policy consideration cannot provide cover for external administrators who decide to deal in assets of other persons for no reason relating to the administration of which they are seized," the judgement said.
"I conclude, therefore, that the alleged equitable lien does not arise.
"On the other hand, they are entitled to a lien for disposing of goods which ultimately turn out to be unclaimed and they should be entitled to realise those goods and, subject to any claim, apply the proceeds for the purposes of the administration."
The judge has noted the issue of the ongoing storage costs at the Armadale (pictured) and Clayton premises had become the centre of the unravelling legal embroglio.
His honour noted the issue was one of "spot fires' that had arisen during the voluntary administration.
BDO's James White urgently sought by way of interlocutory application a series of directions to protect the besieged accountancy firm in terms of storage rental and insurance costs going forward.
<div class="judgment_content">
<div id="content_div_544611">
<div id="judgment_div_544609" class="docx_judgment_content">
"The effect of my decision is that the administrators, to the extent that they have been conducting the process of looking after and attempting to return by means of orderly stocktake the consigned goods to the consignors, have acted outside the functions which are conferred on an administrator and, accordingly, they are not entitled to indemnity or remuneration in respect of that," Federal Court judge Nye Perram noted in another judgement.
"The consequence of that conclusion, so far as rent which has been paid in the past is concerned, is that the rent is the administrators’ cost," he noted.
There was a stocktake that cost more than $1 million which Federal Court judge Nye Perram noted could have been court approved if permission had been sought by BDO prior to its undertaking.
The auction house held 1000s of goods belonging to other people, consisting of:
(a)  goods delivered to it to be auctioned but which had not yet been auctioned at the time the administrators were appointed;
(b)  goods delivered for auction but which had failed to sell and which were awaiting collection by their owners; and
(c)  goods which, although successfully sold at auction, had not yet been collected by the successful bidder.
The initial case judge noted a number of persons whose goods were successfully sold at auction by Mossgreen now claim that the money received by it from their respective purchasers is held on trust for them and is not, therefore, available for general creditors.
The three-cornered contest between the administrators, the trust-asserting consignors and the secured creditor is to be determined by the court later this year.
</div>
</div>
</div>
The besieged administrator of collapsed auction house has yet to advise, today Thursday, when clients and buyers can collect the artwork and collectibles.
<div>
BDO administrator James White had previously said the levy was "not negotiable". 
ASIC has reportedly not yet raised any concerns in relation to the administrators' conduct, but is expected to once the legalities are all done.
The administrators meet quick initial resistance when they told the first meeting of creditors in January that were exploring court judgements on whether a constructive trust arrangement existed.
Minter Ellison lawyer Lindsay Powers, on behalf of art collector Michele Asprey, suggested "this was the clearest case of a trust relationship he has encountered." 
Michelle Asprey was among those who presented their argument regarding the $353 levy in the recent court case over the proposed BDO fee.
The administration came December 21 following failed fundraising attempts.
<div title="Page 5">
Sumner, who did not attend the first meeting, blamed the current circumstance on growing "a little bit fast."
There were 330 creditors initially identified at the meeting who were told no law required trust accounts for the auction proceeds.
There has yet been a second creditors meeting, given a court extension has been granted.
<div title="Page 5">
The names of the creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.The biggest unsecured creditor stemmed from the auction of a book collection.
Some $1.75 million is owed to the family of the late wealthy insurance underwriter Martin Copley who auctioned off the books in October.
His auction items included John Gould's monumental The Birds of Australia, a large folio in eight volumes with 681 hand-coloured lithographed plates, bound in dark green morocco by Riviere, an original subscriber's set, which sold at $446,400 including premium.
The second biggest client was another deceased estate, that of the late South Australian building industry icon Alan Hickinbotham and his late wife Margaret.
It was billed as the highest value collection ever to be sold in Adelaide when auctioned in May by Mossgreen's chief, Paul Sumner.
Sydney's society Coppleson family were listed as owed $465,000, the third highest-owed creditor.
It followed the sale of the contents of the Macleay Regis penthouse, home (pictured top) of the late esteemed gynaecologist Professor Malcolm Coppleson and his late wife, Patricia, who was Vogue Living’s editor-at-large.
The 172 lots included the sale of a $192,200 Ian Fairweather work which had an $80,000 to $120,000 price guidance. A Tim Maguire fetched $117,800.
Mossgreen's last auction on December 7 last year was the contents of the Sheehy family with just 274 of the 438 lots being sold. The family, who are owed $45,000, inquired at the meeting whether Sumner's passport would be surrendered.
</div>
</div>
</div>
</body></html>

BDO lose another Mossgreen administration Federal Court judgement

<html><body>
The judge in the ongoing Mossgreen court hearings has made an order that the BDO administrators are justified in not returning the auction goods before the Full Court rules on the appeal of an earlier judgement on the fate of the valuable art and antiques currently caught up in the collapse of the auction house.
"I will make an order to that effect," Justice Perram said yesterday.
But the issue of the ongoing storage costs at the Armadale (pictured) and Clayton premises has become the centre of an unravelling legal embroglio.
His honour noted the issue was one of "spot fires' that had arisen during the voluntary administration.
BDO's James White had urgently sought by way of interlocutory application a series of directions to protect the besieged accountancy firm in terms of storage rental and insurance costs going forward.
<div class="judgment_content">
<div id="content_div_544611">
<div id="judgment_div_544609" class="docx_judgment_content">
"The effect of my decision is that the administrators, to the extent that they have been conducting the process of looking after and attempting to return by means of orderly stocktake the consigned goods to the consignors, have acted outside the functions which are conferred on an administrator and, accordingly, they are not entitled to indemnity or remuneration in respect of that," Federal Court judge Nye Perram noted yesterday.
"The consequence of that conclusion, so far as rent which has been paid in the past is concerned, is that the rent is the administrators’ cost," he noted.
BDO are appealing an earlier judgement that ruled the fee-seeking administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers" when BDO sought to require the consignors to pay a levy for the return of their goods.
There was a stocktake that cost more than $1 million which Federal Court judge Nye Perram noted could have been court approved if permission had been sought by BDO prior to its undertaking.
"If the Full Court reverses my decision, then the administrators will be entitled to recover that rental and insurance cost by means of the equitable lien which will, by that time, have been reinstated," Federal Court judge Nye Perram noted.
"If they are unsuccessful in the appeal to the Full Court, then they will have no equitable lien and they will have no entitlement to be reimbursed in respect of the rent.
"The difficulty with the proposed interlocutory orders which are being sought is that, although couched, as Mr Foreman of counsel put it, as if it were an interim stay, they are not actually interim in effect.
"If I now make an order, as is sought, that the administrators are justified in causing the company to retain and to continue to pay the rent, then, even if the Full Court upholds my decision, at least for the period covered by that direction, the administrators will have been acting within their statutory remit.
"This is because I will have so held this afternoon, even though, on this hypothesis, I will have held in a final order that the administrators are not entitled and the Full Court will have upheld that.
"That is not a situation which seems to me to be possible.
"I doubt whether I have the power to make the orders which are sought in relation to trying to put the administrators in a position where they can pay the rent and be sure that it has got to their account. 
"Even if I do have the power, I would not, as a matter of discretion, exercise it for the reasons which I have given.
"I therefore refuse that aspect of the interlocutory application.
"On the other hand, the administrators are also concerned that, if consignors begin turning up at the premises in the next day or so before the Full Court appeal and demand their goods and the goods are returned to them, and if thereafter the administrators are successful in their Full Court appeal, they will have lost their lien because the goods will have been gone.
"This seems to me to be an unanswerable submission.
"I therefore accede to the suggestion that I should make an order that the administrators in substance would be justified in not returning the goods before the disposition of the Full Court appeal and I will make an order to that effect."
The auction house held a large quantity of goods belonging to other people, consisting of:
(a)  goods delivered to it to be auctioned but which had not yet been auctioned at the time the administrators were appointed;
(b)  goods delivered for auction but which had failed to sell and which were awaiting collection by their owners; and
(c)  goods which, although successfully sold at auction, had not yet been collected by the successful bidder.
The judge noted a number of persons whose goods were successfully sold at auction by Mossgreen now claim that the money received by it from their respective purchasers is held on trust for them and is not, therefore, available for general creditors.
The three-cornered contest between the administrators, the trust-asserting consignors and the secured creditor is to be determined by the court later this year.
The judge noted the administrators have in the meantime two alternate interests in recovering the cost of the stocktake and related expenses from the consignors.
"On the one hand, if the secured creditor’s claim for $6 million and the trust claims are unsuccessful then the administrators will be entitled to recover the stocktake expense under their indemnity out of the company’s assets conferred by s 443D of the Act.
"However, this will significantly dilute the return to unsecured creditors as Mr White acknowledged.
"On the other hand, if the secured creditor is successful in asserting his security (or the trust claims succeed), then the administrators will bear the costs themselves since there will be no company property available from which their indemnity may be acquitted.
"In either case, the administrators have a motive to seek to have the consignors meet the cost of the stocktake."
</div>
</div>
</div>
</body></html>

Stored Mossgreen art and antique rental and insurance liability issue flares

<html><body>
ASIC has obtained orders from the Supreme Court of Queensland appointing provisional liquidators to three companies due to concerns about a herd of approximately 261 head of cattle abandoned by Nangus Holdings Pty Ltd (previously Nant Angus Holdings Pty Ltd) management.
Nant Angus offered an investment in cattle to retail investors.
As part of the investment arrangement, Nant Angus was to lease the herds back from the investor for a period of five years from the date of purchase and then buy them back from the investor at an agreed price.
Investors were told that during the lease period they would be paid an annual interest rate of 9.95 per cent on their investment capital.
Investors were introduced to this investment through full page advertisements taken out in the Australian Financial Review newspaper by Nant Angus.
ASIC has obtained orders from the Supreme Court of Queensland appointing Mr Richard Hughes and Mr David Orr of Deloitte as provisional liquidators to three companies:
<ol>
<li>Nangus Holdings Group Pty Ltd</li>
<li>Nangus Holdings Pty Ltd</li>
<li>Nangus Grazing Company Pty Ltd</li>
</ol>
ASIC applied for and obtained these orders as part of an ongoing investigation into the Nangus Group of companies.
The orders were sought by ASIC due to concerns about the solvency and lack of management of the companies.
Keith Batt and Margaret Letizia, the individuals responsible for the creation and management of the companies, are now both personally bankrupt, disqualifying them from managing a corporation.
The orders require the provisional liquidators to provide a detailed report to the Court regarding the financial position and management of each company so the Court can consider whether to make final orders to wind the companies up.
The couple's Hamilton house has recently been listed for sale by the receivers.
</body></html>

j.ballantyne1990-6AQqhLzZaK

ASIC express concern over fate of Nant Angus cattle 

<html><body>
BDO, the besieged administrators for Mossgreen, are to appeal their recent Federal Court defeat, further delaying the return of art to clients of the collapsed auction house.
The accountancy firm lost their expensive court case last week seeking to charge clients for the return of their goods.
Weekly holding costs are ticking over at $44,000.
Clients, already furious at BDO's attempts to charge a $353 per lot to have their own property returned, are in the dark as to just when they will be able to collect their unsold or purchased lots.
But BDO claims to have incurred about $1,150,000 (including GST) of costs including the stocktaking and storing of auction lots. 
BDO’s application argued a complete stocktake of vendor lots was required by the specialist firm, Tiger Asset Group.
"I am concerned about the risk the administrators will be personally liable for these costs and expenses," James advised the court in a hasty affidavit lodged after the recent court loss.
The court judgement savaged the accountancy firm when Federal Court judge Nye Perram ruled the fee-seeking administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers."
"Accordingly, they are not justified in requiring the consignors to pay a levy for the return of their goods," he ruled.
As part of the hearing, BDO Australia has asked the Federal Court to rule that all its court costs be paid out of Mossgreen's limited estate which, if agreed, will reduce the available funds for even secured creditors.
There has also been no ruling on allocating costs of the stocktaking.
<div>
BDO administrator James White had previously said the amount of the levy was "not negotiable".
"It is still a nightmare," the art collecting accountant Tom Lowenstein told Ross Greenwood's 2GB last week.
He said it was devastating for some of his art world clients yet to get their own property back.
BDO had not responded to a request for public comments, Ross Greenwood told his listeners. 
There has still not been a second creditors meeting yet held, which is another source of bewilderment by the many auction house vendors.
"There's been deafening silence as to when the second creditors meeting will be held," one aggrieved collector noted.
It has been mooted BDO could potentially face a motion to be replaced at the meeting.
Toorak businessman Jack Gringlas​ remains the biggest secured creditor, being owed $6 million. 
The administration came December 21 with the initially identified 330 creditors told no law required trust accounts for the auction proceeds.
<div title="Page 5">
<div title="Page 5">
The names of the creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.
The appointment of administrators has revealed that Mossgreen was insolvent to a significant extent.
One of its administrators, James White, gave evidence that as at March his investigations had revealed that it had $2.8 million of assets and $14.8 million of creditors including the secured creditor to the value of $6 million.
There is also the additional issue where a number of persons whose goods were successfully sold at auction by Mossgreen now claim that the money received by it from their respective purchasers is held on trust for them and is not, therefore, available for general creditors.
The three-cornered contest between the administrators, the trust-asserting consignors and the secured creditor is to be determined later this year.
Justice Perram noted if the outcome of that contest is that the secured creditor is entitled to rely upon his security, the return to general creditors will be nil.
Justice Perram noted "even if it is not, the return to them will be no more than 18.9 cents in the dollar (i.e. $2.8 million divided by $14.8 million) and even that is on the assumption that the trust claims fail.
Some of the present difficulty arises because Mossgreen did not conduct its inventory control systems competently despite the holding of other people’s goods being a central part of its business.
When the administrators were appointed there was uncertainty as to the status of some of the stock which was on hand, although Paul Sumner offered to work for free to assist the process.
The inventory system suggested that there were as many as 34,000 lots being held, but the limited staff (who were kept on for this purpose) thought there were between 8,000 and 12,000 lots.
"The Administrators have carefully considered Justice Perram’s judgment, as well as the options available to the Administrators to achieve an orderly resolution of the Company’s affairs," creditors were told today.
<div title="Page 2">
<div>
<div>
"The Administrators have decided to appeal Justice Perram’s decision to the Full Federal Court," White advised.
A notice of appeal was filed by the adminstrators on 12 April 2018, with accompanying submissions regarding the urgency of the appeal.
The Federal Court has confirmed that the appeal is due to be heard on an urgent basis on Tuesday, 17 April 2018 not before 12.00pm before a bench of three Judges.
The Administrators applied separately for orders preserving the status quo pending the urgent appeal.
At a case management hearing held on 13 April 2018, the Federal Court made the order that the administrators are justified in causing the company to retain possession of the consignor property until the determination of the notice of appeal.
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

Meddling BDO to appeal Federal Court Mossgreen loss

<html><body>
BDO, the besieged administrators for Mossgreen, have lost their expensive court case seeking to charge clients of the collapsed auction house for the return of their goods.
Clients were furious at BDO's attempts to charge a fee – levied at $353 per lot – to have their own property returned.
Some lots were going to cost more for their return that their actual value.
The judgement this morning savaged the accountancy firm.
Federal Court judge Nye Perram ruled the administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers."
"Accordingly, they are not justified in requiring the consignors to pay a levy for the return of their goods," he ruled.
"In reaching this conclusion I have not disregarded what is sometimes referred to as the 'salvage' nature of the work done by external administrators or the concomitant need to ensure that persons are not deterred from doing such work in the future.
"But that well-founded policy consideration cannot provide cover for external administrators who decide to deal in assets of other persons for no reason relating to the administration of which they are seized," the judgement said.
"I conclude, therefore, that the alleged equitable lien does not arise.
"On the other hand, they are entitled to a lien for disposing of goods which ultimately turn out to be unclaimed and they should be entitled to realise those goods and, subject to any claim, apply the proceeds for the purposes of the administration."
The plantiffs are to present short minutes of order giving effect to these reasons within seven days.
As part of the hearing, BDO Australia has asked the Federal Court to rule that all its court costs be paid out of Mossgreen's limited estate.
BDO's administration has previously been embarrassed in February when incomplete official documents were lodged with ASIC, requiring the lodgement of replacement paperwork after Property Observer pointed out the need for the accountancy firm to lodge the full Report as to Affairs from Administrator document.
ASIC was given a 21 page Report as to Affairs from Administrator to upload for public disclosure, not the full 45 page report.
"We lodge what the director provides us with. It is the director’s RATA, not BDO’s," BDO spokeswoman Rosey McGrath advised.
"A RATA with all attachments was subsequently received and lodged yesterday afternoon," she subsequently advised.
The besieged administrator of collapsed auction house Mossgreen had told clients and buyers it would continue to hold onto the artwork and collectibles until payment of the fee was made subject to court orders.
<div>
BDO administrator James White had previously said the amount of the levy was "not negotiable". ASIC has reportedly not yet raised any concerns in relation to the administrators' conduct.
Clients were also furious that the Sydney administrators took the issue to the Sydney Federal Court, and inconvenienced the mostly Melbourne clients.
The administrators meet quick initial resistance when they told the first meeting of creditors in January that were exploring court judgements on whether a constructive trust arrangement existed.
They indicated BDO would likely approach the courts to rule on the matter.
However this course was challenged by Minter Ellison lawyer Lindsay Powers, on behalf of art collector Michele Asprey, who suggested "this was the clearest case of a trust relationship he has encountered." 
The chairman advised that initial legal advice had been obtained and it was considered necessary to obtain directions from the court "due to the various classes of creditors, the estimated shortfall to creditors and the overall complexity of the matter."
The chairman, James White from BDO, however indicated his personal view was that unsold goods held on consignment remained the property of the vendors. 
Michelle Asprey was among those who presented their argument regarding the $353 levy in the actioned court case over the desired BDO fee.
The Australian Financial Review recently revealed that Paul Sumner's Mossgreen lost money for five years before it went under last December.
At its peak in early 2017, Mossgreen had 55 staff.
Sumner started Mossgreen in 2004 by briefly selling artworks from the walls of his rented Macleay Regis, Potts Point apartment, the same building as the Sydney society family, the Copplesons’ who were among his final auction content vendors. The Coppleson family also made representations to Judge Perram.
Documents obtained by Property Observer indicated Paul Sumner's auction house owes its auction vendors $6.8 million, which is $1 million more than administrators calculated ahead of the first creditors' meeting.
There has not been a second creditors meeting yet held, which is another source of bewilderment by the many auction house vendors.
Toorak businessman Jack Gringlas​ remains the biggest secured creditor, being owed $6 million. 
The administration came December 21 following failed fundraising attempts.
<div title="Page 5">
Sumner, who did not attend the first meeting, blamed the current circumstance on growing "a little bit fast."
There were 330 creditors initially identified at the meeting who were told no law required trust accounts for the auction proceeds.
<div title="Page 5">
The names of the creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.The biggest unsecured creditor stemmed from the auction of a book collection.
</div>
Some $1.75 million is owed to the family of the late wealthy insurance underwriter Martin Copley who auctioned off the books in October.
His auction items included John Gould's monumental The Birds of Australia, a large folio in eight volumes with 681 hand-coloured lithographed plates, bound in dark green morocco by Riviere, an original subscriber's set, which sold at $446,400 including premium.
The second biggest client was another deceased estate, that of the late South Australian building industry icon Alan Hickinbotham and his late wife Margaret. 
It was billed as the highest value collection ever to be sold in Adelaide when auctioned in May by Mossgreen's chief, Paul Sumner.
Sydney's society Coppleson family were listed as owed $465,000, the third highest-owed creditor.
It followed the sale of the contents of the Macleay Regis penthouse, home of the late esteemed gynaecologist Professor Malcolm Coppleson and his late wife, Patricia, who was Vogue Living’s editor-at-large.
The 172 lots included the sale of a $192,200 Ian Fairweather work which had an $80,000 to $120,000 price guidance. A Tim Maguire fetched $117,800.
Mossgreen's last auction on December 7 last year was the contents of the Sheehy family with just 274 of the 438 lots being sold. The family, who are owed $45,000, inquired at the meeting whether Sumner's passport would be surrendered.
</div>
</div>
</body></html>

BDO told to stop intermeddling in Mossgreen client goods

<html><body>
The Federal Court has imposed civil penalties of $70,000 each on the directors of Storm Financial, Emmanuel and Julie Cassimatis, who were previously found by the court to have breached their duties as directors.
They were also disqualified from managing corporations for 7 years.
This draws to a close ASIC's Storm-related litigation, which has included investors receiving compensation in relation to losses suffered on investments made through Storm. 
Storm Financial operated a system of advice, created by the Cassimatises, in which 'Stormified' clients were advised to invest substantial amounts in index funds, using 'double gearing' (Storm Model).  Clients would usually take out a home loan and a margin loan in order to purchase units in index funds, create a 'cash dam' and pay Storm's fees.  Clients were then encouraged to take 'step' investments over time.  In late 2008 and early 2009, many of Storm's clients were in negative equity positions, sustaining significant losses. 
The Townsville based Storm collapsed in early 2009. 
In the original judgment, Justice Edelman had found that a sample of investors who were advised to invest in accordance with the Storm Model, received advice that was inappropriate to their personal circumstances. Each of those investors were over 50 years old, were retired or approaching and planning for retirement, had little or limited income, few assets and had little or no prospect of rebuilding their financial position in the event of suffering significant loss.
Justice Edelman found that the Cassimatises had each engaged in a course of conduct which amounted to one breach of the requirement that they exercise their powers as directors with the degree of care and diligence that a reasonable person would have exercised in that situation.  The maximum penalty for a breach of directors' duties (s180) is $200,000.
ASIC commenced this civil penalty proceeding against the Cassimatises in late 2010. The trial took place between 30 May and 30 June 2016.  In August 2016, Edelman J handed down judgment in relation to liability against the Cassimatises, finding that they had each breached their duties as directors.
In September 2012, ASIC entered into a settlement agreement with the Commonwealth Bank of Australia to make available up to $136 million as compensation for losses suffered on investments made through Storm. The $136 million was in addition to payments of approximately $132 million, and other benefits that CBA had already provided to Storm investors under its Resolution Scheme.
In May 2013 ASIC secured $1.1 million in compensation on behalf of two former Storm investors, Barry and Deanna Doyle.
In May 2013, ASIC intervened in the application for Court approval of the settlement of the related class action brought against Macquarie Bank in respect of Storm as it had concerns about the fairness of the settlement arrangements.  On 12 August 2013, the Full Federal Court agreed that the distribution of the settlement sum was not fair and reasonable to all group members.  Under a revised settlement, Macquarie Bank agreed to pay $82.5 million by way of compensation and costs.
In September 2014, ASIC entered into a settlement agreement with the Bank of Queensland Limited to pay approximately $17 million as compensation for losses suffered on investments made through Storm.
</body></html>

Storm Financial's Emmanuel and Julie Cassimatis cop $70,000 civil penalties

<html><body>
ASIC has released a report setting out the details of the changes made by the big four banks to remove unfair terms from their small business loan contracts of up to $1 million.
The report, Unfair contract terms and small business loans  provides more detailed guidance to bank and non-bank lenders about compliance with the unfair contract terms laws as they relate to small business.
The report follows the announcement in August 2017 that the big four banks had committed to improving terms of their small business loans following work with ASIC and the Australian Small Business and Family Enterprise Ombudsman.
ASIC Deputy Chair Peter Kell said the UCT report provides further guidance to help banks and other lenders ensure that their small business loans are fair, and do not breach the rules prohibiting unfair contract terms.
The report:
<ul>
<li>Identifies the types of terms in loan contracts that raise concerns under the law</li>
<li>Provides details about the specific changes that have been made by the banks to ensure compliance with the law</li>
<li>Provides general guidance to lenders with small business borrowers to help them assess whether loan contracts meet the requirements under the unfair contract terms law</li>
</ul>
"ASIC will review small business lending contracts across the market.
"There are no excuses for failure to comply with the UCT laws, and we will consider all regulatory options available to us if we identify lenders whose unfair contracts break the law."
ASIC will monitor the four banks' use of the clauses to ensure they are not applied or relied on in an unfair way.
ASIC and ASBFEO will continue work together to ensure small business loan contracts comply with the unfair contract terms law.
Unfair contract terms protections were extended to small business from 12 November 2016.
Small business loans are defined as loans of up to $1 million that are provided in standard form contracts to small businesses employing fewer than 20 staff are covered by the legal protections.
In August 2017, ASIC and the ASBFEO welcomed the changes to small business loan contracts by the big four banks that have:
<ul>
<li>Ensured that the contract does not contain ‘entire agreement clauses’ which prevent a small business borrower from relying on statements by bank officers (e.g. about how bank discretions will be exercised)</li>
<li>Limited the operation of broad indemnification clauses</li>
<li>Addressed concerns about event of default clauses, including ‘material adverse change’ events of default and specific events of non-monetary default (e.g. misrepresentations by the borrower)</li>
<li>Limited the circumstances in which financial indicator covenants will be used in small business loans and when breach of a covenant will be considered an event of default</li>
<li>Limited their ability to unilaterally vary contracts to specific circumstances with appropriate advance notice.</li>
</ul>
 
 
</body></html>

ASIC reports on changes to small business loan contracts by big four banks 

<html><body>
<div>
The besieged administrator of collapsed auction house Mossgreen is seeking court orders to justify its controversial $353 collection levy.
Mossgreen clients and buyers were advised it would continue to hold onto the artwork and collectibles subject to court orders.
BDO has also extended the time for payment of the levy and collection of items from March 10 to March 29.  
</div>
<div>
The Australian Financial Review reported ASIC made initial inquiries to BDO about the imposition of the levy after complaints from clients.
<h2>A BDO spokeswoman confirmed BDO was "in dialogue with ASIC".</h2>
<h2>"ASIC has not raised any concerns in relation to the administrators' conduct," she said.</h2>
</div>
<div>
"The court will be asked to make directions and orders in relation to the rights and entitlements of creditors and other stakeholders in goods and funds held by Mossgreen.
"Directions will also be sought in respect of the levy that the administrators have charged," she said.
There were 4322 lots remaining, with the levy set to raise a total of $1.5 million.
</div>
<div>If the court decides the levy is excessive, BDO will refund any difference between the levy and the administrators' reasonable costs, the spokeswoman said.</div>
<div>
BDO administrator James White said the amount of the levy was "not negotiable" as "shortfalls risk further losses to the company and its creditors".
He said the costs include wages, rent, security, insurance, legal fees and administrators' time costs and disbursements.
Clients are frustrated about the levy as it is often more than the value of the item.
Creditors have been concerned at the likely costs in seeking various legal judgements too.
</div>
<div>The Victorian Minister for Consumer Affairs Marlene Kairouz said would be consulting with the Commonwealth about whether regulations need tightening.</div>
<div>Clients who consigned multiple items are being billed thousands of dollars.</div>
<div>
<div>
"I think it's highway robbery," Tom Lowenstein, the high-profile accountant who helps manage the affairs of artist Charles Blackman told the AFR.
Blackman handed 25 drawings to Mossgreen last year for an auction that was due to occur this month.
</div>
<div>Some 4000 Mossgreen clients whose goods were auctioned are owed $6.8 million.</div>
</div>
</body></html>

Asic

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Asic

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News