ASIC confirms Perth raids over Nicheliving investigation

The Australian Securities and Investments Commission has confirmed it has conducted several raids across two states as the watchdog continues its investigation into embattled West Australian builder, Nicheliving.

An unfinished Nicheliving property in Tapping.Credit: Ross Swanborough

An ASIC spokesperson said the raids were executed late last week and were conducted with the assistance of agents from the Australian Federal Police.

“On Thursday morning ASIC, with assistance from the Australian Federal Police, executed three search warrants as part of an ongoing investigation,” the spokesperson said.

“The search warrants were executed at residential premises in Perth and Hobart.

“As the investigation is ongoing, ASIC is unable to provide further comment at this time.”

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The property developer’s construction division was plunged into administration in November last year when it was unable to complete 230 unfinished home builds, leading to a State Administrative Tribunal battle over its building registration.

The legal fight over the registration meant homeowners who had been waiting years for their houses to be complete were unable to access indemnity insurance to have someone else finish the build.

In response, the state government parachuted in and forced Nicheliving to relinquish its building licence in exchange for taxpayers footing the company’s $40 million home indemnity insurance bill to get its homes completed.

The group was dragged out of administration in December after creditors backed a $2.7 million surety from the eponymous family trusts of directors Ronnie Michel-Elhaj and Paul Bitdorf to retain control.

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It then moved much of its building and property work under an entity called Australian Property Alliance.

Nicheliving previously blamed the company’s woes on pandemic-era stimulus and strained supply chains, but this masthead revealed the builder signed on more than double the number of customers it would annually during 2020 to 2021.

The company has repeatedly defended its handling of client contracts, pinning the lengthy building delays on COVID, government stimulus, labour shortages and supply chain issues.

The construction division was the company’s primary income stream, with Nicheliving’s lawyer Martin Cuerden, SC, warning SAT in August last year that the refusal of its building registration renewal would likely trigger the downfall of the entire group.

In July, the state government announced it is drafting new laws to beef up the powers of the state’s building watchdogs to probe and act on financially risky builders, referencing the trouble experienced in the sector in the past few years.

Nicheliving customers had to fight for more than 18 months for the company to be deregistered to access indemnity insurance, but were blocked when Nicheliving fought it in the State Administrative Tribunal.

The new bill will give the Building Services Board and Building Commissioner the power to investigate financially troubled builders and impose conditions or cancel their registration, which would mean earlier intervention and access to indemnity insurance for customers.

Addressing the raids at a press conference this morning, Premier Roger Cook said it is important the state’s residential housing and construction industry is working in the interests of everyone, particularly in terms of the clients with whom they’ve struck contracts.

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