Chinese developer behind defective plagued apartment project may collapse – leaving homeowners scared

Chinese developer behind massive leak and defective plagued apartment project in western Sydney could collapse – leaving homeowners stuck with the bill

  • Chinese developer Australia YMCI behind $ 5billion Ovation apartment project
  • ASIC told by independent auditors YMCI ‘deficit’ has risen to $ 83 million
  • Lidcombe apartment building has significant waterproofing, fire safety issues
  • Owners face potential losses due to declining values ​​and increased layering fees


The Chinese developer behind a massive Australian apartment project plagued by poor craftsmanship, struggling to repay debts and putting owners at risk of huge losses.

Yunnan Metropolitan Construction Investment (YMCI) Australia’s ambitious $ 5 billion Ovation Quarter project in western Sydney, which planned 4,500 units, has come under ASIC control of the company’s deficit ‘, which has reached $ 83 million.

Since 2018, sales have struggled in the mega-housing project, which envisioned a mini-city spread over 19 acres, including a school for 1,000 students and retail areas near Sydney Olympic Park.

The Chinese developer behind a gigantic western Sydney apartment project plagued by poor execution, the Ovation Quarter (pictured), is struggling to repay debt and puts owners at risk of huge potential losses

The Chinese developer behind a gigantic western Sydney apartment project plagued by poor execution, the Ovation Quarter (pictured), is struggling to repay debt and puts owners at risk of huge potential losses

Owners raised concerns about 'chronic problems' with leaky walls, floods after rain, fire doors and security

Owners raised concerns about ‘chronic problems’ with leaky walls, floods after rain, fire doors and security

Those who bought from Ovation have expressed concerns about ‘chronic problems’ with leaky walls, flooding after rain, fire doors and security in a completed building, the Daily Telegraph reported.

After the owners complained about the quality of the units, YMCI proposed repairs in late 2020 and early 2021, which were rejected by the NSW Building Commissioner for not resolving ‘all the serious defects identified’ and lacked Australian standards.

The Commissioner, David Chandler, issued a notice to YMCI Australia on construction work on 9 March 2021, requesting waterproofing repairs to balconies and roofs and exterior tile repairs.

The executive order constantly stated that the errors ‘could be attributed to defective or defective execution’.

The penalty for non-compliance is $ 330,000 plus $ 33,000 for each day the offense is not resolved.

Documents given to ASIC showed that Australia YMCI had a ‘deficit’ of $ 83 million in the fiscal year 2020-21, up from $ 32 million the year before.

‘These conditions indicate the existence of a significant uncertainty that could create significant doubts about the company’s ability to continue operating and be able to pay its debts when they fall due,’ the accounts state.

Built by Yunnan Metropolitan Construction Investment (YMCI) the hugely ambitious $ 5 billion.  Ovation Quarter project in western Sydney, the plans included 4,500 units, retail and a school for 1,000 students

Built by Yunnan Metropolitan Construction Investment (YMCI) the hugely ambitious $ 5 billion. Ovation Quarter project in western Sydney, the plans included 4,500 units, retail and a school for 1,000 students

‘Therefore, the company may not be able to realize its assets and off its liabilities in the normal course of business and with the amounts stated in the accounts.’

The company is understood to be fighting against the order in court and vehemently denied fire safety issues or that it is in financial trouble.

It said that its economic position in 2020 was’ affected by up to 200 million. $ On properties not yet to be settled ‘.

It is also understood that the private certifier for the property is Steven Saad, who was fined $ 15,000 in 2018 by NSW Fair Trading for issuing certificates for a change of use that did not comply with Australia’s official fire safety requirements.

A source in a construction industry told the Daily Mail Australia owners who bought into the first phase are facing a collapse in the value of their biggest asset with so many problems now associated with the project.

‘The biggest problem is that their value can fall through the floor. What was worth $ 1million could drop to $ 400,000.

‘Nobody wants to buy them at market price’.

He added that the owners could end up being liable for increased lay fees, and if residents agreed to try to claim repair costs from YMCI, they would face huge legal bills.

The Daily Mail Australia contacted YMCI Australia and Steven Saad for comment.

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