The ambitious STH BNK skyscraper project marketed as a “community among the clouds” and set to become Australia’s tallest building at 365 metres is now mired in uncertainty, with buyers demanding answers and deposits worth hundreds of millions of dollars locked away as the development struggles to stay afloat.
Promoted as a vertical city offering residents every convenience without leaving home, the project was aggressively marketed even as its development arm was facing significant cashflow issues. Escalating construction costs and hundreds of off‑the‑plan contracts with 10‑year sunset clauses pushed the project to the brink, raising serious doubts about whether the tower will ever be built.
The ABC reports that deposits for around 540 contracts, collectively worth $650 million, remain frozen in an interest‑earning trust account while administrators explore options to revive the development.
For buyers like Madelyn McGhie, who paid a $130,000 deposit in 2023, the situation feels deeply unfair. “We’ve put our money down for a building that’s not being built,” she said, adding that many purchasers want their deposits released unless there is a firm guarantee the project will proceed.
Compounding concerns, the ABC has seen evidence of a referral program promoted to existing buyers at a time when the development arm was already accumulating debts that later forced it into administration. While any deposits from referrals would still be protected in trust, McGhie described the scheme as “predatory,” given the financial red flags.
“You’ve already got people invested,” she said. “You want them to refer friends and family because you need to hit a sales quota to secure finance when you’re already in trouble delivering the project.”
As administrators assess whether the skyscraper can be salvaged, hundreds of hopeful buyers remain stuck in limbo, their money tied up in a vision that may never rise above ground.
+ There are no comments
Add yours