National Hotel Fremantle sale process. Multiple breaches of Corporations Law just in this one issue.
Mark Englebert of Taylor Woodings / FTI Consulting was appointed by Bankwest on 18 July 2011.
He took over 18 weeks to get the property on the market. WHY SO LONG?
13 October 2011. Email from receivers’ lawyers:
“Regarding the progress of the sale of the National Hotel …. Our clients do not have any obligation to provide Mr Butler with such information and, consequently, our clients do not intend to respond to Mr Butler's inquiries in this regard" IS THIS A CORRESPONDENCE OF AN HONEST BANKWEST APPOINTED COMPANY? IT’S A DISGRACE!
There were multiple warnings from me (documented below) regarding leaks which I could have repaired at no cost.
I was not allowed to, and the building suffered significant water damage including structural damage to timbers.
4th November 2011DOC19 Taylor Woodings solicitors advise me:
“The marketing of the National Hotel is dependent upon completion of the engineers’ report and the “cost to complete” in respect of the property, together with the approval of the application for the rooftop bar” NONE of the above was ever done WHY?
23 November 2011. National offered for sale.
After over 18 weeks since the receivers were appointed the National Hotel was put on the market and advertised in newspapers for the first time with offers to purchase closing 4pm Wednesday 14th December (just three weeks of advertising). It sold in a secret deal for half its worth to another Bankwest Customer.
MORE DETAILS AS EVIDENCE BELOW:
National Hotel Bankwest appointed receiver Mark Englebert of Taylor Woodings /FTI Consulting. Sales process: Supporting Documents athttps://www.dropbox.com/sh/ij2tuqktkj0owu9/AAAfKeV7lLc7Je0-VAdeD5Aga?dl=0 Valued twice at over $7m prior to their appointment: DOC 0.1 (Full) & DOC 0.2 (valuation page). Page 34: “The analysis indicates a potential “As if Complete value of $10,470,000 walk-in/walk-out….. After deducting an allowance for the cost to complete of approximately $3,419,000, the value “As is” equates to $7,050,000…” Proving the previous valuation DID, in the Bank valuers, opinion reflect the valuation of the Hotel in its current, uncompleted state. In direct contradiction to Engleberts deliberately false and misleading evidence to a Senate Inquiry in 2012 item 114(c) Discussed more in proposed ASIC submission DOC1b item 114c Once appointed Englebert got it revalued at just $1.5. DOC17 This is simply unbelievable. The land alone was worth more than that being a prime corner block in the centre of Fremantle at the end of the main shopping mall. We had recently spent over $3m rebuilding the six-level heritage listed building complete with a two-level balcony on the two street frontages, A corner domed roof turret and detailed reconstructed heritage architectural details of pediments and ornate details. The building won the City of Fremantle Heritage award. Picture DOC 18 and award DOC 18a
12 July 2011DOC 0.5 Email from selling agent Graeme Clark “…as discussed with you in person last week, both David and I agree that it will be a complete and utter waste of time and money to commence marketing the National Hotel prior to receiving the builders written quotations for completion of the building. Can you please advise us of when we can expect to receive said quotations, as this is a critical issue in relation to the successful sale of the National Hotel. ** 12 July 2011DOC 0.6 Email from selling agent David Kennedy. Advises that building cost to complete quotations are needed being a critical issue, a successful sale wouldn’t happen with out them “Unless you are happy with $3.5m”
18 July 2011 Taylor Woodings are appointed as receivers and Managers over the National Hotel Fremantle. They later appoint the same selling agents mentioned above and would have been given the same advice. 20 July 2011 I send email to receivers and advise 8.41am: “Roof leaks as still incomplete in some areas..” And 3.35pm: “Water and LVL Beams” cc Bankwest Taylor Wooding’s advise (as 4 November below) that they are doing cost to complete and getting approval for a rooftop bar Taylor Woodings do nothing regarding either and wait 20 weeks before putting the property on the market as explained in the email list below: ** 21 July Email S Butler to Taylor Woodings Info on National Hotel marketing including the 12 July email from Graeme Clarke “… complete and utter waste of time…” Proving Taylor Woodings were fully aware of what was needed. 28 July 2011 Email from Sean Butler to Taylor Woodings “The engineer should check the building asap as winter rains are now flooding the basement near the foundations and wetting structural beams that are not designed to be wet for prolonged periods.”
19 August 2011.DOC1 I write to Bankwest explaining that my company is profitable and raising concerns over receivers conduct.
22 August 2011 Email Sean Butler to Mark Englebert: “Hi Mark, Last nights storms have resulted in more flooding at the National Hotel. The roof flashings are incomplete and leak in storms. The top turret is flooded. There is water on all floors now…”
4 October 2011 Email Sean Butler to Mark Englebert: “If we had been allowed to work for Butler Constructions and had been paid since your appointment the National Hotel costings, rooftop bar approval and reports would have all been completed by now and the property could have been on the market. I believe your costs as receivers for performing the same duties will exceed the wages that you have denied us since your appointment and your employees are not qualified or experienced in the duties required (specifically building and planning related matters) which could jeopardize the sale of the properties for the best price. The fact that the National Hotel is not on the market eleven weeks after your appointment indicated there are some problems here.”
6 October 2011. DOC2 Asking why after 11 weeks is the National Hotel not on the market? To which Lawyers acting on behalf of the Bankwest receivers replied on 13 October blow:
13 October 2011. Email from receivers’ lawyers DOC2.1 Item 4. “regarding the progress of the sale of the National Hotel …. Our clients do not have any obligation to provide Mr Butler with such information and, consequently, our clients do not intend to respond to Mr Butler's inquiries in this regard" I ended up paying the receivers and these lawyers over $1.3m for their work supposedly acting on my behalf and that's how they treated me!!
11 October 2011. DOC3 I sent an email to Bankwest: “….the sale of the Lighthouse Beach Resort. I had put an offer in with another party but was told by the agents it wouldn’t be considered as it was subject to the sale of the National Hotel. The National Hotel still isn’t on the market though it’s been with the receivers for over 12 weeks and the selling agents have told me yesterday it may be another 4 weeks till it is. There are clearly some issues here which meed to be sorted out as soon as possible.” Raising concerns why my offer for the Lighthouse Hotel cannot be considered as the National Hotel is not sold and the fact that the National Hotel isn’t even on the market after 12 weeks
18 October 2011. DOC4 I sent an email to Bankwest: Why National Hotel still not on market after 12 weeks? And raising other concerns.
18 October 2011 Email Sean Butler to Taylor Woodings DOC5 “The leaks on the roof are now worse as the roof top membrane is cracking at the joints and was not intended to be left unattended for so long” They ignore advice on roof waterproofing and winter rains penetrate the incomplete roof membrane. They try to repair it but use the wrong materials. Water entered the structure and large structural glue laminated timber beams are damaged, the roof began to sag, and water then accumulates on the roof adding more weight and deforming the weakened structural timbers.
18 October 2011 email Sean Butler to Mark Englebert: “The National Hotel is still not on the market 14 weeks after your appointment. You indicated when you spoke to me last Thursday that you were going to get the engineer to do plans so the builder can price the job. The engineer will need architectural plans completed if you are doing it this way. Other consultants such as mechanical and electrical will also need to be involved. If I had been retained this work would have been completed months ago for a fraction of the price.”
2 November 2011. Email from Sean Butler to Taylor Woodings accountant: “I suggest Taylor Woodings gets the National Hotel prepared for selling. It’s taken over 15 weeks to date and it appears virtually nothing has happened to date. Could you please provide an update to me on the progress and likely timeframe for selling the National”
4 November 2011. DOC6 warnings and pictures Advising their inaction at National Hotel has resulted in structural damage.
4th November 2011DOC19 Taylor Woodings solicitors advise me: “the marketing of the National Hotel is dependent upon completion of the engineers’ report and the “cost to complete” in respect of the property, together with the approval of the application for the rooftop bar” Despite saying that they were doing this no engineers report was ever shown to me ( I doubt it was done) and the cost to complete and application for the rooftop bar were not done. Bankwest receivers withheld all information from me that could have allowed me to do all this and they held up the sale for months while doing nothing and charging me up to $120,000 a month for their and their lawyers’ fees.
4 November 2011. 9.30am Email Sean Butler to Mark Englebert DOC6 “I refer to the Email below and attached pictures to which there has been no response. The roof top membrane has not been fixed and with heavy rains over the last few days water damage is now occurring and will continue to occur with more rain predicted over the next week. The Damage will need to be addressed in the engineers report as it is now affecting structural timbers that are not designed to be wet for prolonged periods”
4 November 2011. 9.30am Email Sean Butler to Mark Englebert DOC6A “I attach photos of the National Hotel taken this morning. (showing water damage) With recent heavy rain water is now entering through the unprotected membrane at the joints in the roof sheets and is and will continue to cause structural damage, some of which is dangerous. These issues will now need to be addressed in the Engineers report when selling the building, with Builders pricing up cost to complete, and with the Builders Registration Board if another Builder takes it over. I have personally been the Registered Builder supervising the work until your appointment but want to make it quite clear that Butler Constructions Pty Ltd or I personally I cannot be held responsible for the structural issues that have and will continue to develop due to lack of proper maintenance and care since the time of you have been in control, especially given that I have raised the issues with you personally and in writing several times over that period. The same goes for the Lighthouse and particularly the Asbestos and public health issues raised there. It is likely that the leaks at the National will get worse as they already have as once water gets under the membrane it weakens the flooring and structure beneath and causes expansion and contraction as it gets wet and then dries. Water is now trapped in some places between the roof membrane on top and the acoustic barrier below. When it gets hot the trapped water often turns to steam and can cause bubbling of the membrane and it could have to be removed in places or completely. The roof is now sagged slightly due to water damage in one area causing ponding that was not happening before. It is possible much of the roof will now have to be removed and replaced at considerable cost. More heavy rain is predicted for the week ahead and water could leak to the office levels on the next floor down (already ceilings are wet in the accounts office). Now that water is under the membrane to such an extent it is unlikely that it can be properly repaired until into Summer as it needs to be dry in order for the materials to bond. If the repairs had been done when I first raised it with you it would have been a fairly simple inexpensive job. It’s now a major one. The unprotected ply flooring on the verandas is now delaminating in some places and the unfinished jarrah is now soaked, and in some areas badly buckled.”
4 November 2011 Email from Bankwest Lawyers’ Confirms that Bankwest was fully aware of what was going on but refused to do anything about it
7 November 2011. Email from Sean Butler to David Gilbert at Bankwest DOC7 Hi David, The National Hotel Fremantle isn’t on the market 16 weeks after receivers have been appointed. The selling agents don’t know what’s happening and neither do I. Same with the Lighthouse. The things the receivers have indicated need to be done, some of which I had in hand and were doing, have been stopped and not re commenced. Why? I have been sacked from my own profitable solvent company on the grounds of genuine redundancy which is simply not true. False allegations have been made about me. Why? I request an urgent meeting with someone from the Bank to address these issues 8 November 2011. DOC8 I find out our receivers have done nothing regarding National Hotel planning approvals I and advise both Bankwest and Englebert of this. Engineer Architects, town planner advise no one from the receivers have contacted them and that nothing has been done.
9 November 2011. Email Sean Butler to Mark Englebert and David Gilbert at Bankwest DOC9 Dear David and Mark, I refer to the attached and the various emails sent yesterday. So in summary nothing has been done on the Planning approval, Costing by quantity surveyors, Architectural, Structural, Hydraulic, Mechanical, Fire or Electrical issues to do with this building in the last 16 ½ weeks. Further to that none of the issues on the building the receivers advised needed doing regarding occupational safety have been attended to. The roof leaks advised of months ago have also not been dealt with and there is now water damage to the structural ply roof deck. My office contains 16 cardboard boxes containing my files that were boxed up in the first week of August and still remain there unopened 3 months later If there is anything I have missed could you please let me know.
11 November 2011. DOC10 SERIOUS FALSE ALLEGATIONS by the receivers.
15 November 2011. DOC11 Meeting request outlining serious concerns over receivers’ conduct
16 November 2011 Email Sean Butler to Mark Englebert with photos of water damage. Dear Mark, I refer to my email below (4 November) and Water is now trapped between the rooftop membrane and acoustic under lining and will continue to cause damage until drained out. (I could do this today if required) The membrane has already started to bubble as I advised it would with water underneath. Unfortunately the warranty may now be void as repairs were not done when required and sections will need replacement. The structural ply flooring may now be damaged beyond repair in places. The membrane is now damaged in a couple of places and needs further repair
17 & 21 November I advise Englebert by email and with photos of water damage and safety issues: “The water has now been there for months and is mouldy, smelly and has formaldehyde (carcinogenic) present leached from the plywood floor above.” “As maintenance work was not done when required water is trapped now….The water has leached through the plywood, has been trapped there for several weeks is now warm and smells, it may contain formaldehyde.
21 November 2011. Email Sean Butler to Mark Englebert and Bankwest DOC12 “It is now 18 weeks since you took over and the National Hotel still isn’t on the market, any idea when it will be?”
23 November 2011. Newspaper Advertisements DOC20 National offered for sale After over 18 weeks since the receivers were appointed the National Hotel put on the market and advertised in newspapers for the first time with offers to purchase closing 4pm Wednesday 14th December (just three weeks of advertising).
** 24 November 2011. Email Sean Butler to National Hotel sales agent Graeme Clarke. DOC21 “Hi Graeme, Its good news it’s on the market at last as it is now over eighteen weeks since Taylor Woodings took over. The Receivers Solicitor, Minter Ellison, had advised me on 4th November, just a few weeks ago that: “the marketing of the National Hotel is dependent upon completion of the engineers’ report and the “cost to complete” in respect of the property, together with the approval of the application for the rooftop bar” Could you now please send this information through? I have some concerns that the works the receivers have done on the roof top may have voided the previous contractors warranty, can you please advise if the subcontractors they recently engaged to do the work gave a warranty for the work done.” I later found out that none of the above was done.
25 November 2011.Email Sean Butler to Mark Englebert and Bankwest DOC13 Concerns over National inaction “I refer to the letter to me from Minter Ellison dated 4th November 2011 item 6 in response to my concerns on the National Hotel: “the marketing of the National Hotel is dependent upon completion of the engineers’ report and the “cost to complete” in respect of the property, together with the approval of the application for the rooftop bar.” It now appears the items mentioned above have not been done at all and in the case of the cost reports not updated as required.”
26 November 2011. DOC14 “David Kennedy thinks the National is at $3.5m without builders’ costs. Graeme Clarke says, “both David and I agree that it will be a complete and utter waste of time and money to commence marketing the National Hotel prior to receiving the builders written quotations for completion of the building.” It’s taken you over 18 weeks to get the National Hotel on the market because the receivers were supposed to be getting builders costs to complete and finalising the development approval for the rooftop bar. It is now apparent they have done neither but put it on the market anyway. Further to this work done by the receivers on the roof will have voided ant builders’ warranties on the structure. I have been raising concerns on this to you all ever since the receivers were appointed and have offered to help, all with no response. I hope my concerns are unfounded as if they prove to be correct a large amount of money will be lost.”
1 December 2011 Taylor Woodings send me a schedule of work they now want done following a report they received dated August 2011 WHY only now?
3 January 2012. DOC15 Warning to Bankwest over receivers conduct and requesting that that administrators be removed over my business to avoid further unnecessary costs, delays and loss in value. Bankwest ignored all these concerns leaving incompetent and dishonest receivers Taylor Woodings / FTI Consulting to destroy my business.
8 February 2012 Letter from Mark Englebert: Advises that they have accepted a conditional but legally binding offer for the National Hotel.
8 June 2012 Mark Englebert advises: His and his lawyers’ fees to 30 April total $1,055,683 plus GST For 18 July 2011 to 30 April = 9 1/2 months = $111,124 plus GST per month This does not Include consultants or selling agents fees! (the final figure came to over $1.35m)
8 June 2012 Mark Englebert advises: "The National Hotel has sold for $ 3,725,000" That’s about half of its previous valuation
9 June I write to Englebert: “I am both a Director and a Shareholder of the companies involved. You have been unwilling to disclose your fees until now, and the fees charged for what you have done seem unjustified and excess in the extreme, and your conduct during the administration and sales process has been secretive and it seems obstructive. I have to ask what have you got to hide? I request that you immediately release any invoices, bills of costs and recharge schedules in connection with the fees, costs and disbursements referred to above.”
11 June 2012 I receive an email from Jeremy Nipps at Taylor Woodings: “The Receivers are not under any obligation to provide you with further information or documentation in relation to the matters referred to in this letter, nor are they prepared to do so. In any event, the Receivers consider that any invoices, bills of costs and recharge schedules in connection with the fees, costs and disbursements referred to above are subject to legal professional privilege and, on that basis, are documents to which you (and your client) are not entitled.”