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Building Construction, Government NSW

Enforceable Undertaking to Remediate Parramatta Building Defects

Office of the NSW Building Commissioner 2 mins read

Hassall Developments Pty Ltd (receivers and managers appointed) has signed an Enforceable Undertaking with the Office of the Building Commissioner to remediate all serious defects in the Parramatta building development.

Since November 2020, NSW Fair Trading completed various inspections and audits on the apartments at 9 Hassall Street, issuing building work Rectification Orders and a Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW). 

As part of the NSW Government's broader building industry reforms, the Act provides for the proactive investigation and rectification of serious defects in residential apartment buildings by the Secretary of the Department of Customer Services (the Secretary).

The Prohibition Order identifies serious defects within the building and prohibits the issue of an occupation certificate in relation to the building until the Order is revoked by the Secretary.

Hassall Developments Pty Ltd is the original developer of the apartments where receivers and liquidators have been appointed. The original builder of the apartments was Merhis Build Pty Ltd.

A subsidiary of Wingate Property Finance Pty Ltd was appointed receivers and commenced discussion with the Office of the Building Commission to resolve the complex situation. The receivers appointed by Wingate are now in the role of the developer.

The receivers have agreed to remediate all serious defects remaining in the building, identified by a building compliance specialist, and use the apartments as a rented property. They will deal directly with off-the-plan purchasers to bring those contracts to an end.

The Undertaking is now online at https://www.nsw.gov.au/preview-link/node/21464/9df3dd6c-39fc-4eae-af51-0f3af1407ca4


Quotes to be attributed to NSW Building Commissioner David Chandler

“In Parramatta, 179 units will be available to the rental property market, after the necessary remediation work is completed by the receivers, which will provide a housing supply boost.

“The off-the-plan purchasers of units in this building have been on a distressing journey. However, I believe this outcome will be better for them. If they were to settle rather than get their deposits back, they would be settling on a building which has identified serious defects that will be remediated before being rented and may have future defects that may later be identified.

“The NSW regulator will place a higher-level test on lifting orders where the developer has become insolvent and is unlikely to be available to respond if serious latent defects arise.”


Contact details:

media@customerservice.nsw.gov.au

0438 108 797

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