<a href="https://www.apartments.com.au/developers/pitard-group">Pitard Group</a> has officially opened the doors at EVA Elsternwick Village Apartments, delivering a collection of move-in ready residences in one of Melbourne’s most tightly held neighbourhoods.

With only a limited number of residences remaining, <a href="https://www.apartments.com.au/buildings/eva-elsternwick-village-apartments-241-glen-huntly-road-elsternwick-vic-3185">EVA</a> presents a rare opportunity to secure a completed apartment in the heart of <a href="https://www.apartments.com.au/developments/elsternwick-vic-3185">Elsternwick</a>, situated on the coveted Glen Huntly Road.

Comprising 101 residences across a mid-rise building, EVA offers a mix of spacious two- and three-bedroom apartments. Community feedback on Apartments.com.au consistently highlights the project’s quality finishes and well-resolved floorplan design.

Created in collaboration with <a href="https://www.apartments.com.au/architects/via-architects">VIA Architects</a>, the project reflects a design ethos centred on resident experience and contextual sensitivity. Each apartment has been crafted with an emphasis on natural light, practical functionality, and acoustic performance.

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Interiors channel a subtle Hamptons aesthetic, with engineered timber flooring, high ceilings, and soft, neutral finishes. Kitchens are appointed with ILVE European appliances, shaker-profile cabinetry, and stone benchtops, while bathrooms continue the same refined, understated palette.

Pitard Group, who also delivered the construction through their in-house team, has prioritised acoustic insulation through double glazing and noise-reducing materials - a quality noted by early residents and buyers alike.&nbsp;

Private outdoor space is a hallmark of each apartment, whether in the form of a balcony or sun-filled terrace. Many residences enjoy bay or city views, with floorplans that prioritise indoor-outdoor flow and functional layouts. Thoughtful inclusions such as Euro laundries, study zones, and abundant storage ensure the apartments are equally suited to downsizers and professionals seeking quality and low-maintenance living.

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EVA’s amenity offering extends beyond the apartments. A rooftop terrace, complete with in-built BBQs and panoramic views across Port Phillip Bay and the Melbourne skyline, invites residents to relax or entertain in style.&nbsp;

A fifth-floor residents lounge, with north-eastern orientation and floor-to-ceiling glazing, offers an ambient retreat enhanced by kitchen and bathroom facilities.&nbsp;

Ground-floor retail and dual lifts add further convenience, while basement car parking with secure storage rounds out the amenity offering.

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As a move-in ready address, EVA also benefits from its exceptional location. Just 130 metres from Elsternwick Station and within walking distance of tram and bus links, it places residents minutes from the CBD and the bay.&nbsp;

The surrounding neighbourhood is a cultural and culinary hub, with institutions like Attica and Bang Bang nearby, as well as daily essentials within easy reach.&nbsp;

Green spaces including Elsternwick Park and Rippon Lea Estate offer a sense of retreat, while top-tier schools and health services add to the suburb’s appeal.&nbsp;

Completed and ready to move in, EVA Elsternwick Village Apartments offers two-bedroom residences from $899,000.

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Staff Writer

Inside EVA: Pitard Group's completed apartments in Elsternwick

With Brisbane’s housing market soaring and home ownership becoming increasingly out of reach for many buyers, townhouses have emerged as the new urban dream, offering private, low-maintenance retreats complete with pools, parklands, and lifestyle amenities.

As Brisbane faces a growing shortage of quality new residential offerings, <a href="https://www.apartments.com.au/developers/honeycombes-property-group">Honeycombes Property Group</a> has released to the market Songbird Terraces, a boutique development of just 34 terrace homes in the heart of the leafy residential enclave of Oxley.

Offering a more affordable option to the white picket fence house, buyers can purchase a brand new architecturally designed three bedroom terrace home overlooking park and bushland with a communal heated pool, BBQ terrace, private parklands and an on-site café, while being just minutes from <a href="https://www.apartments.com.au/developments/oxley-qld-4075">Oxley</a>’s village centre, train station, and a range of schools and amenities.

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Each of the spacious three bedroom plus multi purpose room or four bedroom townhomes feature premium finishes, landscaped courtyards, designer kitchens, two-car accommodation, and optional upgrades for tailored living.

Honeycombes Property Group Managing Director Peter Honeycombe said with completion anticipated in early 2027, this was an incredibly rare chance to buy a fixed-price, brand-new, off the plan home in one of Brisbane’s most tightly held and liveable suburbs, without the stress of auctions and chaotic open homes.

“With prices starting from $1.195 million, <a href="https://www.apartments.com.au/new-townhouses/songbird-terraces-oxley-10-honeyeater-circuit-oxley-qld-4075">Songbird Terraces</a> are designed for owner occupiers seeking space, style and lifestyle, without the maintenance,” Honeycombe said.

“Surrounded by natural bushland and close to manicured parks, walking trails, boutique shops, cafes, cinemas and golf courses, Oxley continues to stand out as one of Brisbane’s most liveable suburbs.”

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<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Residential Director Andrew Scriven said with a limited number of homes available, Songbird Terraces was attracting strong interest from families, upsizers, first home buyers and downsizers looking for quality, location and long-term value.&nbsp;

“Demand is high, supply is low, and the market is crying out for high-quality homes in established well connected areas like Oxley,” Scriven said.

“What was once seen as a compromise between a house and an apartment a townhouse has now become a lifestyle choice, more and more homebuyers are shifting their focus from traditional detached houses to modern, low-maintenance townhouses that offer greater value and convenience.

“As the city’s population grows and urban sprawl becomes less sustainable, Brisbane’s townhouse market is set to expand even further.&nbsp;

“There’s definitely a panic from buyers who’ve been pushed out of the house market but still want to stay in well-connected suburbs with great schools and amenities, they are worried they will miss out as property prices continually rise.”

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After eight years of calling Australia home, Agnes Skoraczewska and Matt Biskupski decided it was finally time to take the next step and purchase a home of their own. With property prices continuing to climb, the couple didn’t want to wait any longer and secured a three-bedroom plus multi purpose room townhouse at Songbird Terraces, locking in a fixed price ahead of their move in 2027.

“The truth is, we didn’t want to wait any longer,” Biskupski said. “Seeing what was happening in the market, we realised now was the right time to buy. It gives us peace of mind knowing we no longer have to worry about renting.”

When they discovered Songbird Terraces, the decision came easily.

“The area is lovely and quiet, yet still so close to the city, it’s the perfect balance for work and life,” Skoraczewska said. “It’s a place where we can recharge our batteries while staying connected to everything we need.”

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For Agnes and Matt, buying off the plan offered the ideal solution, the confidence of securing their dream home at today’s prices, and the excitement of planning for the future in a community that perfectly fits their lifestyle.

As the final residential precinct within the Songbird Oxley master plan, Songbird Terraces will continue to breathe new life into the area and help create a suburb destination rich in lifestyle amenity.

Colliers Residential Director Lily O'Connell said Songbird is positioned to take full advantage of elevated north and east-facing parkland views, the homes feature low-maintenance design and high energy efficiency to reduce ongoing costs while enhancing everyday comfort.

“And with an array of layouts, catering to a diverse range of lifestyles this is an offering for all,” O'Connell said.

“This is the final release in a masterplanned community that’s become one of Oxley’s most desirable addresses, offering a last chance to enter this community where opportunities are few and far between.”

The homes will be delivered by Clearcon Builders, specialists in premium townhome construction. They will commence construction before Christmas, and is aiming to complete the development in early 2027.

<h2>Songbird Terraces Snapshot</h2>

<ul>
	<li>34 architecturally designed 3 bedroom + multi-purpose room terrace homes.</li>
	<li>An array of layouts, catering to a diverse range of lifestyles.</li>
	<li>Perfectly positioned to take advantage of north and east views over park and bushland.</li>
	<li>A multi-purpose room, which can serve as a second living area, teen retreat, study or fourth bedroom.</li>
	<li>Designer kitchens featuring high quality engineered stone benchtops and European appliances.</li>
	<li>Spacious outdoor living areas and landscaped courtyards perfect for alfresco dining.</li>
	<li>Generous internal and external spaces, designed to take advantage of views overlooking park and bushland.</li>
	<li>Low maintenance, energy efficient &amp; two car accommodation.</li>
	<li>Access to a heated resort-style pool, outdoor entertaining terrace and beautifully landscaped gardens and park.</li>
</ul>

[smartcode_project_cta:default project_id=149443]

Songbird Terraces offer 34 architect-designed townhomes in private enclave, surrounded by bushland, parks and resort style amenity

Joel Robinson

Townhouse living, Brisbane’s new affordable urban dream?

Kirra Beach has been hot property since the onset of the pandemic in early 2021.

Development sites were snapped up, projects sold out, and many of those developments are now beginning to be handed over to purchasers.

The latest entrant to Kirra, timing its arrival perfectly with little to no new off the plan apartment stock currently on the market in the area, is <a href="https://www.apartments.com.au/developers/pyco-group">Pyco Group</a>, which is expanding its South East Queensland footprint through projects such as Atelier in West End and Nouveau in Albion, both currently under construction and scheduled for completion next year.

They recently launched <a href="https://www.apartments.com.au/new-apartments/onde-kirra-10-churchill-street-kirra-beach-qld-4225">Ondé Kirra</a>, quietly set on Miles Street just a stone’s throw from the sand and the world-renowned surf break at Rainbow Bay.

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The current release focuses on a wide variety of three-bedroom configurations, from layouts starting at $1.89 million and offering nearly 130 sqm of space, to larger three-bed options approaching 160 sqm and oriented north-east to capture views over the ocean and the length of the Gold Coast skyline.

Each apartment follows a layout that prioritises light, airflow, and connection to the outdoors. Interiors are shaped by a warm, coastal-inspired palette that balances soft neutral tones with natural timbers. Kitchens feature premium finishes and flow directly into dining and living zones, framed by full-height glazing. Many apartments offer wraparound views and corner orientations to maximise natural light from multiple angles.

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There are just 90 apartments in the 14-storey building designed by DAH Architecture.

Beyond the apartments, Ondé’s offering is rounded out by a series of resident-only amenities designed for comfort and practicality. These include a fitness studio, outdoor pool, co-working pods, and lush communal spaces on the ground floor.

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Rawcorp kicked off construction on site just over three months ago, demolishing the two houses and two original walk-up unit blocks.

The award-winning construction firm is expecting to complete Ondé&nbsp;in mid-2027.

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Ondé Kirra times entry to booming southern Gold Coast market as apartment options shrink

The Wentworth Park Sporting Complex and its immediate surrounds will make way for new housing and sporting facilities, the latest rezoning play by the Minns Labor Government to meet Sydney's housing supply crisis.

The 3.3-hectare Wentworth Park Sporting Complex will be&nbsp;converted into community sporting fields and public green space, allowing for the rezoning of the surrounding area to support up to 2,500 additional well-located homes.

These are in addition to the 4,800 homes already planned or approved nearby, including around 2,000 homes on the old Sydney Fish Market and neighbouring sites, bringing the precinct total to as many as 7,300 new homes.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/mirvac-to-develop-over-1-400-new-homes-on-former-sydney-fish-market-site">Mirvac to develop over 1,400 new homes on former Sydney Fish Market site</a>

In addition to the new housing and sporting facilities, the Wentworth Park precinct will be immediately adjacent to transport links including a new ferry stop at Sydney Fish Markets, an upgraded light rail station at Wentworth Park, a continuous 15-kilometre coastal boardwalk from the Blackwattle Bay to Woolloomooloo, and the Pyrmont Metro station, which is set to open in 2032.

When the current greyhound lease expires in September 2027, the existing facilities will be demolished and the land transferred to the City of Sydney to be converted into community sports fields. Current estimates suggest around 20 additional sport fields are required in the city area by 2031 in order to meet the needs of the sporting community.

The new 14-hectare park will also be made available for hosting festivals and community events as a condition of the transfer to ensure the new harbourside parklands can be utilised by the whole community.

“We recognise Wentworth Park holds deep history and meaning for many people, and we know some will be disappointed by this change," NSW Premier Chris Minns said, adding however that "cities change, and we&nbsp;have a responsibility to plan for the future.

“Right in the middle of Sydney and connected by rail, light rail, ferries and the future Metro, our plan for the future of Wentworth Park will deliver much-needed new housing while also providing up to 20 new community sporting fields.

“This is more homes, more playing fields and better public spaces, alongside the infrastructure that makes neighbourhoods work. This is homes and community facilities delivered together, not one without the other.”

“This is how we build a fairer and more balanced Sydney. By creating new housing in well-serviced areas, instead of pushing growth to places without the transport and infrastructure to support it.”

Minister for Planning and Public Spaces Paul Scully said&nbsp;Wentworth Park has a long and proud history.

"Today we’re securing its future for the next generation," Scully said.

"This plan keeps land in the public hands and delivers new homes, new sporting facilities and new open space for a community that is growing fast. Our city is changing, and we have a responsibility to make sure people can live near the jobs, education and transport they rely on. We’ll continue working closely with the City of Sydney to deliver this rezoning in a timely way, and we’re ready to step in with a State-led rezoning if it’s needed."

Minns Gov to demolish Wentworth Park Sporting Complex to make way for 2,500 new homes and sporting facilities

<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> has been reshaped over the past few years by an influx of migration.

What's now becoming more apparent, as new apartment developments beyond the beachfront start to take shape, is how new residents of Palm Beach will spend their days.

Take <a href="https://www.apartments.com.au/new-apartments/villea-palm-beach-26-mawarra-street-palm-beach-qld-4221">Villea</a>, the debut Gold Coast apartment development by the now-national luxury apartment developer Abadeen. Abadeen has been delivering high-end apartments across Sydney's North Shore region for over two decades, and recently expanded into Melbourne where they are focusing on the same model that has served them so well over the last 23 years.

The developer is approaching completion of Villa,&nbsp;69 apartments on Mawarra Street. It sits&nbsp;400 metres from the northern stretch of Palm Beach, where mornings often begin before the suburb fully wakes. From upper levels, the sunrise casts across Burleigh Headland through to Snapper Rocks, a reminder of Palm Beach’s coastal orientation.

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For some, the start of the day may simply be coffee on the balcony; for others, a walk to the shoreline becomes the morning reset.

By mid-morning, attention shifts to everyday convenience. Abadeen is curating a ground-floor retail offering unrivalled in the local development space. It will host café options and small-format retail at street level. This complements the wider Palm Beach strip, where Canvas Café, 600 metres north, remains a local favourite for breakfast or lunch.&nbsp;

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For households with school-aged children, Palm Beach State School is within a short walk, around 300 to 400 metres away, reinforcing the precinct’s appeal for families seeking proximity to daily essentials.

The suburb’s parks and waterways anchor the afternoon's activities. Tallebudgera Creek sits a 10-minute walk away, offering calm swimming spots and shaded pockets along the water’s edge. Small local parks and Melaleuca Dog Park provide low-key outdoor options, while Mallawa Sports Complex adds structured recreation with its fields and courts. These amenities capture the quieter side of Palm Beach, distinct from its busier beachfront corridor, but still central to why the suburb has become one of the Gold Coast’s most in-demand apartment locations.

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Late afternoons bring the focus back to the building. As construction progresses, Emicon’s team is completing interiors where light-filled layouts, timber flooring, and full-height glazing form the backbone of the apartments’ internal experience.&nbsp;

Residents will have access to a resort-style pool, gym, and outdoor entertaining spaces, amenities designed for practical daily use rather than spectacle.

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Evenings wind down inside the residences, where kitchens feature stone benchtops and European appliances. The outlook shifts from ocean light to the hinterland’s slower fade, closing the loop on the day.

Residents will move into Villea in early 2026, with construction firm Emicon putting the final touches to the new address.

[smartcode_project_cta:default project_id=106840]

Life at Villea: Morning to evening at Palm Beach's newest address

Mossgreen

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After another spray from the Federal Court, the Mossgreen administrators have thrown in the towel, telling the no-pushover owners of $5 million worth of art and antiques that their insurance coverage had lapsed.
The letter sent by the BDO administrators on Anzac Eve stunned clients, already angered at the way the administration had been undertaken ever since their appointment just prior to Christmas. 
BDO have advised the auction house clients to help themselves to their stored contents, though not to come through the besieged accountancy firm which had expended a $1 million stocktake that the Federal Court described as "intermeddling".
BDO sent an update today to consignors of Mossgreen. The second creditors' meeting has been decided as May 4. Secured creditors have been advised their payment is likely to be 2 cents in the dollar.
"The voluntary administrators are without funds to meet the ongoing expenses of preserving and facilitating the return of goods," James White, the admonished BDO administrator advised all Mossgreen clients by email on Thursday.
"Consequently, the voluntary administrators are no longer in a position to retain the company’s remaining two leasehold premises and have no alternative but to arrange for possession of those premises to be returned to their respective landlords, as of close of business, Monday, 23 April 2018.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/24/MOSS_LETTER.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/2018/4/24/MOSS_LETTER.jpg" alt="">
"It will now be up to the landlords of those premises to co-ordinate the return of your consigned goods.
"Please contact the relevant landlord," the long suffering Mossgreen clients were told.
At the time of issuing the correspondence, the landlord for the Clayton warehouse indicated that he will seek to contact consignors directly in relation to the return of their consigned items.
BDO offered no indication of the return process of the former High Street headquarters.
"We remain in discussions with the landlords regarding how we might be able to assist them with the goods collection process, and to make available the work we have done to date to bring order to that process."
"However, you will appreciate that as we are without funds, we can no longer maintain insurance in respect of the consigned goods.
"We strongly recommend that you immediately ensure that you have your own insurance in place," White said.
One client indicated the "BDO's bloody-mindedness will tip the scales to ensuring state government's move to ensure in future that auction houses are covered by trust fund style regulations."
Mossgreen clients hope both landlords are disposed to readily assist in the return of the goods and chatels. Property Observer anticipated the landlords would become key stakeholders in our reportage last week.
BDO never provided "any satisfactory explanation" as to why they did not adopt a "common-sense approach" on an earlier quick return of the $5 million in art and antiques caught in the Mossgreen administration, the Federal Court of Appeal noted earlier this week.
The now published judgement that admonished BDO came after BDO was thrawted in its attempt to impose a hefty fee on all clients of the collapsed auction house, as they sought to recoup the $1 million in expenses undertaken without reference to the courts.
The fee often was more than the content's value.
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."
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.
The judges noted given that the BDO administrators only sought directions after the event, in effect to approve the course that they had already undertaken.
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. 
The names of the art and antique creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.
Caught amid the clients, were Sydney's society Coppleson family listed as owed $465,000, the third highest-owed creditor.
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jchancellor-FAypfDUnLy

BDO says Mossgreen contents are now uninsured after copping a Federal Court shellacking 

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

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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.
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"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.
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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.
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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.
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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.
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BDO lose another Mossgreen administration Federal Court judgement

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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.
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"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."
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Stored Mossgreen art and antique rental and insurance liability issue flares

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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.
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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.
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"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.
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Meddling BDO to appeal Federal Court Mossgreen loss

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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.
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BDO told to stop intermeddling in Mossgreen client goods

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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.  
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<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>
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"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.
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<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>
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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.
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<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>
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"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.
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<div>Some 4000 Mossgreen clients whose goods were auctioned are owed $6.8 million.</div>
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j.ballantyne1990-6AQqhLzZaK

Mossgreen administration costs rise as court judgements sought

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Auction houses are understandably fielding inquiries as to whether they keep client money in an audited trust account ever since the collapse last December of Mossgreen.
Sotheby’s, Bonhams, Menzies and Deutscher and Hackett say they do – although there is no industry standard.
“Trust accounts should absolutely be a requirement,” Chris Deutscher of Deutscher and Hackett has told The Australian Financial Review.
“The law should be changed, we’ve just seen the reason why.”
The Australian Financial Review Magazine has revealed that Paul Sumner's Mossgreen lost money for five years before it went under last December.
Its client account, where funds from auctions were held before being disbursed to vendors, had a shortfall back to December 2013, it reported this week, having previously reported, in a 2016 Australian Financial Review profile, that Mossgreen's turnover had impressively grown from about $10 million in 2013 to $39.6 million in 2015. 
But the paper now reports Mossgreen’s competitors – Sotheby’s, Deutscher and Hackett, Menzies, Bonhams – had for years "wondered how the company was staying afloat and keeping on the lights in its sumptuous Melbourne and Sydney showrooms."
At its peak in early 2017, Mossgreen had 55 staff, almost double Sotheby’s which auctioned three times as much.
The paper suggested Mossgreen had some blockbuster auctions, that "raised only a few hundred thousand dollars, well below the $1 million that industry veterans say is needed for an auction to make money."
“It can cost you as much to auction off a $600 piece of Royal Doulton as it does to sell a $10,000 painting,” noted Mark Fraser, who suggested Mossgreen had spent too much on its premises.
“If you’ve got good stuff to sell, you can sell it in a tin shed, you don’t need fabulous auction rooms,” the former chairman of auction house Bonhams, Fraser, and now an independent art consultant said.
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.
Mossgreen contractually paid clients after 60 days, double the standard 30 days.
It used money in its client account as a spare line of credit with the shortfall, according to two of the AFR sources, growing.
An ownership change inside Mossgreen’s business in July meant the shortfall became a big problem, it noted.
It was when Jack Gringlas sought to stop funding its losses. By 2017 he had lent $6 million to Mossgreen.
In 2013 he invested $1.6 million into Mossgreen in return for 40 per cent equity. Charles Leski bought 20 per cent, leaving Sumner with the rest.
Last July Gringlas and Leski sold their combined 60 per cent to Sumner for $2.4 million, the same price they had paid.
Gringlas agreed he could pay in four years’ time and reportedly also gave Sumner two years to find new backers so Mossgreen could pay back the $6 million.
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 last month.
Toorak businessman Jack Gringlas​ remains the biggest secured creditor, being owed $6 million. 
The administration came December 21 following failed fundraising attempts.
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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.
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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.
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The biggest unsecured creditor stemmed from the auction of a book collection.
Some $1.75 million is owed to the family of <a href="http://www.mossgreen.com.au/content/event/the-collection-of-martin-copley-am/" target="_blank">the late wealthy insurance underwriter Martin Copley</a> 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 <a href="http://www.mossgreen.com.au/content/event/the-malcolm-and-patricia-coppleson-collection/" target="_blank">lots included </a>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.
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Mossgreen was losing money for five years before collapse

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The anticipated rescue of auction house Mossgreen is not happening.
Its 330 plus creditors were advised Mossgreen founder Paul Sumner had indicated his proposed deed of arrangement was not proceeding.
Instead Sumner will do everything in his power "to help creditors, to maximise what they receive,’’ he told Fairfax Media.
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Some $5.8 million is owed to clients who sold paintings, books, cars and other collectibles through the company over recent months.
Around 30 of the firm's 40 plus staff were made redundant by administrators on Wednesday.
The remaining staff will do a stocktake of items still being held on premises.
The items are not considered Mossgreen assets having been consigned goods, although their return will be delayed until a full stocktake is complete, a statement said.
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The former backer Jack Gringlas's Jadig Investments is the major secured creditor.
The secured loan facility from Jadig was provided to fund its expansion with interest being charged at $40,000 a month
The auction house fell into voluntary external administration last month.
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Mossgreen, known for its Armadale tea rooms at 926-930 High Street, and single-owner house content sales, owes $5.8 million to auction clients, plus $6 million to its former part-owner, Jack Gringlas.
There were 330 creditors identified at the meeting last week who were told no law required trust accounts for the auction proceeds.
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.
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The biggest unsecured creditor stemmed from the auction of a book collection.
Some $1.75 million is owed to the family of <a href="http://www.mossgreen.com.au/content/event/the-collection-of-martin-copley-am/" target="_blank">the late wealthy insurance underwriter Martin Copley</a> who auctioned off the books in October.
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.
Mossgreen's most recent 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.<a href="https://www.mossgreen.com.au/content/event/the-ralph-drexel-collection-online-part-6/" target="_blank"> </a>
The collapse of the much heralded restructuring plan means that an earlier hope of the gallery's co-founder to return all vendor money is now uncertain, according to Fairfax Media.
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"When I said that vendor creditors would be paid 100 cents in the dollar and staff would keep their jobs, it was based on a witnessed agreement with the secured creditor," Sumner told The Australian Financial Review on Wednesday.
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But when previously asked the about creditors' chances of getting their money back, Gringlas had officially noted Sumner had "written to every vendor and told them they're going to get 100 cents in the dollar ... that he is putting in place arrangements to ensure that they all get paid. So he must believe it. I don't know where that money is coming from because there isn't the money in the company, so I can only assume he's planning to bring more money into the company."
Gringlas sold the leased High Street, Melbourne premises mid-last year for around $10 million to John Karkar.
The collapse of this supposed agreement with Jadig Investments, which Sumner declined to detail to The Australian Financial Review, means the distribution of funds is in the hands of administrators.
The inside suggestion is 20 cents in the dollar.
In a statement, the administrators said they would now "begin the process of an orderly wind down of the business. Notwithstanding this, a sale will be considered and expressions of interest shall be sought."
Mossgreen was founded in 2004 by Sumner and wife Amanda Swanson.
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Mossgreen administration gathers no white knight

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The creditors who attended the first Mossgreen creditors' meeting last week have been advised no law required trust accounts for the auction proceeds.
The auction house Mossgreen fell into voluntary external administration last month, and its creditors anxiously await a rescue package with the promised full repayment from its founder, Paul Sumner.
Sumner told media outlets - ahead of the 1.30 hour meeting which he did not attend - that no creditor would be out of pocket. 
Inside the meeting there was a sense of forbode.
"Looking at the present figures, it appears that the best case scenario for creditors is no return," one of the despondent 330 creditors represented at the meeting suggested.
Sumner, the son of art and antique dealers, said the administration was due to debts following the company's rapid expansion and the withdrawal of its key investor, Jack Gringlas, who is the major secured creditor.
In July last year, Sumner and his wife, Amanda Swanson bought back Gringlas' share of the business.
"Since then, we've been advised to take the [voluntary administration] course, as the best way to clear historical debt – associated with previous investors – out of the business, and restructure the company and move forward," Mr Sumner told his local paper, The Age.
"Not one vendor or one buyer will lose one dollar in this process," he said.
"Mossgreen is a business that relies on trust, so when you do something like this, your reputation will be affected, by how you deal with your vendors and buyers."
“It is the best was to clear historical debt, accrued through previous investors,” Sumner also told the rival Herald Sun.
He even told the Sydney Morning Herald Private Sydney gossip columnist Andrew Hornery: "I want to assure every vendor that they will get their money ... every cent of it."
Mossgreen, known for its Armadale tea rooms at 926-930 High Street, and single-owner house content sales, owes $5.8 million to auction clients, plus $6 million to the former part-owner, Jack Gringlas with interest being charged at $40,000 a month.
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The first creditors' meeting was told the assets were $1.6 million cash in the bank along with $1.2 million owed by auction lot buyers, who have a legal binding contract that can not be terminated by the administrators.
The staff are owed possibly around $1 million. The company's superannuation and tax obligations were indicated as "relatively" up to date.
College Capital came forward at the creditors' meeting asking to be noted as a secured creditor. The secured Westpac amount was a $12,000 credit card facility.
The biggest unsecured creditor stemmed from the auction of a book collection.
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Some $1.75 million is owed to the family of the late wealthy insurance underwriter Martin Copley who auctioned off the books in October.
The first question at the creditors' meeting asked on the status of any auction sale proceeds.
The meeting chairman advised "that the company was not required by law to operate a trust account."
The administrators were exploring whether a constructive trust arrangement existed.
It was likely they would approach the courts to rule on the matter.
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, indicated his personal view was that unsold goods held on consignment remained the property of the vendors. 
The chairman indicated the administrators were not planning to hold any auctions. The Queen Street, Woollahra premises were to be vacated. It was the intention of the administrators to advertise the business for sale/retructure. Unsold consignment items will be available for collection from January 15 in an orderly way.
In August The Australian Financial Review reported Mossgreen was shedding more than a dozen staff, adding Sumner advised it is business as usual at the Melbourne-based auction house, "which continues to line up sales at a frenetic pace."
Sumner said the staff restructure reflected the firm's increasing focus on single-owner collections and higher value lots following its expansion in recent years - including the merger with the Charles Leski stamp auction group in 2013 and the takeover of New Zealand's Webb's in 2016.
"We've probably grown a little bit fast considering that the market plateaued," Sumner told the mainstream media late December after the news emerged pre-Christmas on Property Observer of the administrators being called in.
"I'll be the first to say that that's the case," he advised.
"What we're doing now is the opposite. We're restructuring, taking out some of the costs of our business, so that we are a much leaner, healthier business starting from the first of February." 
The media also reported Sumner said Mossgreen did not plan to close any outlets.
The creditors' meeting chairman noted the current situation was that "the company had a high cost base with substantial rent costs, a large number of employees and was funding the losses of the New Zealand business."
The NZ business was indebted to the company for inexcess of $1 million.
"Auction monies were essentially used to fund the working capital and trading losses of the business," the creditors were told by the chairman as he closed the meeting.
Asked by a creditor on the 100% repayment advisory from Sumner, the chairman replied: "This was the view of Mr Sumner and did not reflect the administrators' position."
Creditors departed, concerned that the limited known available proceeds will be reduced by administration fees and court costs.
 
 
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