A construction company that specialized in tearing down old homes is being liquidated with more than $3 million in debt – and 45 unfinished homes – after its license was suspended.
Ansa Homes, a Sydney-based family-owned business founded in 2006, collapsed after the New South Wales Building Commission suspended its contractor’s licence for 60 days following customer complaints about defects.
Shareholders of the troubled company appointed insolvency firm Jirsch Sutherland on Tuesday after the state government agency blocked it from operating, leading to the dismissal of 20 builders.
The five office employees had been working from home since June, following an earlier furlough, and had completed administrative tasks until liquidators were appointed.
Ansa Homes had stopped building homes two months ago and a spokeswoman for the liquidator told Daily Mail Australia it owed creditors more than $3 million, including the tax office, as 45 homes were still under construction.
“The main catalyst was the suspension of the building permit, which led to liquidity problems,” he said. “Staff have been laid off.”
The New South Wales Building Commission had initially suspended its licence in June.
But on August 20 he told Ansa Homes chief executive Mark Maloney to “show” why disciplinary action should not be taken against him.
A new 60-day suspension was issued, which was not due to be lifted until October 19.
A construction company that specialized in knocking down old houses and replacing them with new ones is being liquidated after its license was revoked
“The NSW Building Commission is monitoring ANSA’s ongoing insolvency proceedings,” a spokesperson told Daily Mail Australia.
‘A notice to show cause gives an entity or individual the opportunity to present arguments as to why they believe disciplinary action should not be taken against them.
‘The most recent 60-day suspension of the company’s contractor license, as well as Mr. Maloney’s contractor license, supersedes those previously issued.’
Once a company goes into liquidation, owners can make a claim through the Home Building Compensation Fund.
The housebuilder, based in Edmondson Park in Sydney’s southwest, was not taking customer calls on its main sales number on Thursday.
Disgruntled customers have anonymously posted a series of complaints on Reddit about the company that carried out demolition and reconstruction projects.
“We had an accident and we rebuilt it with Ansa. It was a nightmare,” he said.
‘If you have problems with Ansa, defend yourself and don’t listen to his nonsense or his lies.
‘Contact the building commission as soon as possible. Don’t wait, act immediately.’
Ansa Homes has promoted itself as the builder of “custom-designed, architecturally inspired homes tailored to your family’s needs.”
Ansa Homes, a family-run business founded in 2006, has collapsed after the New South Wales Building Commission suspended its licence for 60 days following customer complaints about defects.
“Building with Ansa Homes will give you a level of certainty that is hard to find in today’s uncertain construction market,” their website states.
Ansa Homes had also been heavily promoting granny flat designs, and the company took advantage of a New South Wales law change in 2009 to allow granny flats to be added to houses on blocks larger than 450 square metres.
Mr Maloney appeared in a 2019 video selling the idea of grandparents living side by side with their grandchildren in complete separation.
“They maintain total separation: they have a separate barbecue area, they have a separate outdoor area, separate kitchens, separate bathrooms,” he said. “Plus, if they need help, you’re right next door.”
The Australian Securities and Investments Commission announced on Wednesday that a general meeting held the previous day had decided to liquidate Ansa Homes and appoint Jirsch Sutherland partners Peter Moore and Andrew Spring as liquidators.
“Peter and Andrew are currently investigating how many homes have been completed and/or are under construction by the company at the date of their appointment,” the liquidator’s spokeswoman said.
The company’s assets are being sold in an attempt to pay creditors, including customers who had homes under construction.
The sell-off comes after construction cost increases have moderated.
CEO Mark Maloney appeared in a 2019 video selling the idea of grandparents living next door to their grandchildren in complete separation.
While construction firms account for a quarter of insolvencies, construction costs over the last financial year rose by just 2.6 percent, well below inflation and marking the slowest annual increase since 2002, the CoreLogic Cordell Construction Cost Index showed.
The initial post-Covid construction cost surge coincided with the Reserve Bank raising interest rates 13 times in 2022 and 2023.
The most aggressive pace of monetary policy tightening since the late 1980s has pushed the cash rate to a 12-year high of 4.35 percent, and Reserve Bank Governor Michele Bullock this month ruled out any relief for borrowers before Christmas.
Daily Mail Australia has also contacted Mr Maloney and the New South Wales government’s agent, iCare, which handles home building insurance policies.
Ansa Homes customers are advised to call the New South Wales Building Commission on 13 27 00 for help and assistance.
(tags to translate)dailymail
