Billionaire Adrian Portelli alleges defects in fitout of $39m penthouse

2 months ago 17

Billionaire businessman Adrian Portelli’s grand penthouse apartment dreams have turned to a nightmare, as a new video alleges a string of defects in the luxury fitout.

Water leaks, cracked benchtops and missing water stops appear in the video, in which Portelli invites a building inspector to look for faults in the oversized Melbourne residence he bought for $39 million in 2023.

Zeher Khalil of Site Inspections with billionaire Adrian Portelli.

The penthouse crowns the Sapphire by the Gardens development in the CBD, a luxurious twin tower project with residences and a hotel. Portelli speaks in the video about how he intended his purchase to be an investment and loves the sweeping city views and easy access via a sky bridge to the hotel’s hospitality offering.

He intends to use it to host parties or as a guest home for visiting business contacts, and embarked upon a glamorous customised fitout with a double-height ceiling in the living area, an oversized kitchen island bench and an elevated indoor swimming pool. He also made headlines for craning in a McLaren racing car which sits on a podium in the apartment.

Portelli is the founder of LMCT+, an online club offering shopping discounts and regular giveaways of cars and houses to paying subscribers. He previously drew attention for buying houses on reality TV renovation show The Block, including in 2024 when he spent $15.03 million to buy all five houses in that season on Phillip Island. The Block airs on Nine, owner of this masthead.

Portelli made a series of claims about the builder in the video, including financial irregularities with the project.

A scene from the video showing a water leak.

Portelli claimed that when he looked at his accounting and statements, about $15.5 million had been paid to the builder for an $11.7 million contract that was not yet complete. This masthead is not suggesting Portelli’s claims are accurate, just that they have been made.

Site Inspections chief inspector Zeher Khalil, known as The TikTok Inspector for his videos showcasing building defects, conducted a walkthrough of the apartment with Portelli looking for flaws.

“I’ve noticed some of the benchtops are cracked,” Khalil said, while looking at the home’s butler’s pantry. “There’s heaps of them that have been cracked.”

They also look at the connection between a bathroom and a bedroom. Khalil says that Portelli will need to rip the whole floor out.

Portelli and Khalil consider the benchtops.

“There’s no water stops installed anywhere. You have a shower here, water’s going to end up in the bedroom,” Khalil said.

In another scene, Khalil says that water is leaking from a bathroom and downstairs. He then goes downstairs to have a look, and a stream of water can be seen leaking across the floor.

The builder, Black Sheep Building, was contacted for comment.

When contacted, Portelli was philosophical, but acknowledged other home owners had been affected by issues in the construction industry too.

“It’s a bit disheartening, and a headache that nobody needs,” Portelli told this masthead.

“The sad thing – it’s not just me. I have got the means to get myself out of it.”

The video was first reported by news.com.au.

More to come