Two companies run by controversial Sydney property developer Jean Nassif have been placed into receivership.
On Wednesday, advisory firm KordaMentha announced it had been appointed as the receivers and managers of 51 OCHR and JKN Finance.
Mr Nassif is the director of both companies, which are listed as the owner and developers of the Skyview apartment towers, in Sydney's north-west.
Buyers were blocked from moving into the 900-apartment Castle Hill complex across five towers in 2021, after the NSW Building Commissioner confirmed "extensive signs of cracking" were discovered in the building's basement.
Mr Nassif and Toplace — the builder of Skyview — later had their building licences suspended after significant “structural issues” were found in two of the towers by NSW Fair Trading inspectors.
"The Castle Hill project is partially completed, with two of its residential towers occupied and three towers still under construction," KordaMentha said.
"The receivers advised work will cease at Castle Hill, while the site is secured, to ensure it is safe.
"They will work with creditors and stakeholders to determine a strategy to enable construction of the remaining three towers as expeditiously as possible."
In July 2021, Mr Nassif’s building company, Toplace, agreed to be liable for any structural defects in the Skyview towers complex for 20 years.
The agreement was the first of its kind and was expected to set a benchmark of accountability for developers across New South Wales.
It does not appear that Toplace has been put into receivership at this stage.
In January, Mr Nassif and Toplace successfully argued for a stay on the suspensions of their building licences before the New South Wales Civil and Administrative Tribunal.
Mr Nassif's lawyers argued the suspensions would jeopardise remediation works for 899 units that were either under repair or set to have defects fixed within Toplace projects.
Recently, Mr Nassif's 27-year-old daughter, Ashlyn Nassif, was charged with fraud offences relating to the Skyview development.
The ABC is not suggesting that Mr Nassif was involved in her alleged offences.
In court documents, it is alleged that Ms Nassif made and submitted false or misleading sales contracts in order to access a $150 million loan for the construction of three buildings in the development.
She was granted bail and is yet to enter a plea.
Ms Nassif is due to appear in court again in May.
