Buyback of WA’s Nicheliving Raises Flag

Directors of a builder-developer that left more than 200 homes unfinished when it entered administration last year have reportedly bought back control, despite being barred from building. Directors of a builder-developer that left more than 200 homes unfinished when it entered administration last year have reportedly bought back the companies despite not being able to operate. --> Administrators KordaMentha were appointed to Nicheliving Holdings and its subsidiary companies Projex Management and Construction and Rubix Future and Building in November of last year. A second creditors meeting was held in December, at which the directors offered $2.7 million to retain control of the companies, which was subsequently accepted. In a statement to The Urban Developer this week, the WA Government said it was aware the directors had bought back the company despite promises made to the state before entering administration. Customer unrest Nicheliving’s regulatory issues began last year after unrest among its customers and its dire financial position became public. Seventy-three complaints had reportedly been made to the WA Building Commissioner since January, 2022. The commissioner, Saj Abdoolakhan, also raised concerns that the directors would not be able to pay its debts. It was revealed that the company owed $3.8 million to the Australian Tax Office and had seven separate court actions by suppliers for unpaid bills open against it. As a result, the WA Building Services Board refused to renew the company’s building registration in July, meaning the company could not undertake any building work requiring a building permit or enter into new contracts. ▲ Nicheliving is behind Inglewood's Sky Homes, touted as Perth’s most high-tech homes. The company then appealed to the State Administrative Tribunal. A spokesperson for Nicheliving said at the time they were “committed to resolving this matter swiftly and ensuring that our customers’ projects are completed to the highest standards”. However, by October the WA Government stepped in. The Government said that the company had withdrawn its tribunal review application, so the refusal to renew the company’s building contractor registration stood. This allowed customers who had contracts with Nicheliving that had not been honoured to continue with home indemnity insurance claims, and complete home builds with a builder of their choice. Nicheliving directors Ronnie Michel-Elhaj and Paul Bitdorf, their spouses and several related entities agreed to not apply to be a registered building contractor or to own or control a registered building contractor business in WA for the next 10 years, the WA Government said. It was quite a turn for at least one of the directors, Ronnie Elhaj, who made the rich lists in 2017 with a reported wealth of $92 million . ‘They still cannot build’ However, despite the promise—and claims by the WA National Party in December that Nicheliving’s subsidiary, Projex, may have been trading while insolvent as far back as 2021, and Nicheliving itself since August 2022—the company appears to have returned. WA commerce minister Sue Ellery said she was aware that Nicheliving directors “have bought back the company following a creditors meeting in December”. “This does not change anything in terms of our action the State Government took on the company, they still cannot build,” she told The Urban Developer. ▲ The Inglewood project of 58 apartments was also earmarked as Nicheliving’s new headquarters in September. “Had we not taken any action, it is likely customers would still be in limbo facing challenges in accessing home indemnity insurance. “Building and Energy brought Nicheliving to the attention of ASIC following its review of the company’s finances in August.” In the last statement on its website, posted in November, Nicheliving said its property development and real estate divisions “continue to operate as usual, and remain unaffected by the recent restructuring of the Group’s Construction division”. KordaMentha and Ronnie Michel-Elhaj were contacted for comment for this report.

Buyback of WA’s Nicheliving Raises Flag

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