Buyers stuck in contracts for ambitious skyscraper that isn’t being built

Buyers who signed contracts for what was planned to be Australia's tallest skyscraper, the STH BNK project, are now in limbo as the development faces significant financial challenges. The ambitious project, envisioned as a "community among the clouds" rising 365 meters, promised residents a vertical city with extensive amenities.

“

I don't think it's fair. We've put our money down for a building that's not being built.

However, escalating costs have jeopardized the project's future. Hundreds of off-the-plan contracts, many with 10-year sunset clauses, were signed. Currently, deposits totaling approximately $650 million from about 540 contracts remain locked in an interest-earning trust account while the developer, BEULAH, explores avenues to revive the stalled development.

Many buyers, like Madelyn McGhie, who placed a $130,000 deposit in 2023, are demanding their deposits back. They argue that without a guarantee the building will proceed, their funds should be returned. McGhie expressed frustration, stating, "I don't think it's fair. We've put our money down for a building that's not being built."

“

You've already got people invested. You want them to refer friends and family with word of mouth, which is a very strong referral technique, because you want to hit a certain sales quota to potentially secure finance, when you're already in trouble delivering on the project.

Adding to the buyers' concerns, evidence has emerged of a referral program promoted to existing purchasers around the time the project's development arm was facing severe financial difficulties and entered administration. McGhie described this scheme as "predatory," given the apparent financial instability at the time it was launched. BEULAH acknowledged the difficult situation, citing market challenges across Melbourne, but stated they remain focused on finding a positive outcome for all stakeholders.

“

This is not a situation we wanted to find ourselves in, but our project is not immune to the market challenges faced across Melbourne. We remain focused on working with stakeholders to deliver a positive outcome for all involved.