Receivers Korda Mentha have listed a Lewisham development that was 98 per cent completed before its builder-developer, Decon Australia, hit the canvas in December last year.
The boutique mixed-use development at 17-21 McGill Street comprises 38 apartments above two retail tenancies and two basement levels of parking.
But the development, however, comes with a building work rectification order, which specifies 14 items requiring rectification before an occupation certificate can be granted.
Fair Trading NSW slapped the developer McGill Street Investments, registered to Decon Australia director Daniel Saab, with the building work rectification order on April 6, 2023.
The builder Decon Australia was placed into liquidation in December, 2023 and could not complete the development.
An inspection of the site identified eight separate defects including an absence of sprinklers in the basement carpark, smoke detectors that were positioned too low on walls, and leaks causing water to penetrate into a basement level of the building.
The residential development in Sydney’s Inner West is 7km from the CBD and close to other residential developments.
Colliers agents Matthew Meynell and James Cowan are marketing the site under instructions from KordaMentha as receivers.
Colliers managing director of investment services Matthew Meynell said net overseas migration was outstripping the number of homes being built.
“This alone demonstrates the sharp supply cliff we have already reached and until meaningful stock is delivered to the market we will continue to see strong rental and price growth,” Meynell said.
“The median apartment price in Lewisham is $832,500, whilst the median house price is $1,925,000 meaning the average house is 2.3 times more expensive than the average apartment.”
Colliers national director James Cowan said there was an “alarming undersupply of apartment stock in this location”.
“This is a concern due to the affordability crisis that freehold dwelling prices have created,” Cowan said.
“We expect investors will take this into consideration when conducting their due diligence on this opportunity.”
Meynell said the property offered the opportunity for an incoming buyer to work with the Building Commission NSW to verify works and remedy the outstanding issues.
The property will be sold via an on-market expressions of interest campaign closing in August 2024.
