ASIC, AFP raid Nicheliving directors as investigation into failed Perth builder deepens
Federal authorities have raided three Nicheliving-linked properties as scrutiny intensifies over the Perth builder’s collapse, debts and hundreds of unfinished homes.
Investigations into embattled Perth builder Nicheliving have escalated, with federal police and the corporate regulator raiding three residential properties linked to the company’s directors.
The Australian Federal Police (AFP) and the Australian Securities and Investments Commission (ASIC) executed the raids last Thursday (20 November), allegedly seizing mobile phones, laptops and other digital devices. ASIC confirmed the action on Monday (24 November).
“On Thursday morning ASIC, with assistance from the Australian Federal Police, executed three search warrants as part of an ongoing investigation,” a 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.”
While ASIC has not detailed the exact nature of the suspected misconduct, the AFP’s involvement signals the possibility of serious corporate or financial crime.
Long-running collapse
The latest enforcement step follows years of controversy surrounding Nicheliving, including widespread project delays, unfinished homes and escalating financial troubles.
More than 230 homes remain incomplete, leaving hundreds of owners facing prolonged delays, additional rental costs, reliance on indemnity insurance and the need to find new builders to finish their homes. Some customers have been waiting years past their scheduled completion dates.
Between January 2022 and mid-2024, the WA Building Commissioner received more than 70 formal complaints, adding to pressure on the company. In late 2024, Nicheliving attempted to rebrand its property arm under the name Australian Property Alliance.
The recent raids targeted the Perth homes of directors Ronnie Michel-Elhaj and Paul Bitdorf, along with a third residence in Tasmania. Nicheliving declined to comment.
The company’s problems extend beyond disgruntled homeowners. It owes about $3.8 million to the Australian Taxation Office, while numerous subcontractors have launched legal action over unpaid invoices.
A financial report submitted to the State Administrative Tribunal (SAT) indicated the company had $44.2 million in assets against $76.2 million in liabilities.
Regulatory fall-out
In July 2024, the WA Building Services Board stripped Nicheliving of its building registration after determining it failed to meet financial requirements. The company appealed, securing a temporary stay from the SAT that allowed limited operations to continue.
However, in October 2024, Nicheliving struck a deal with the WA Government: the company agreed to surrender its building registration for 10 years, while the state agreed to waive about $40 million in home indemnity insurance liabilities to help ensure customers’ homes could be completed.
The legal dispute had temporarily prevented homeowners from accessing indemnity insurance needed to appoint new builders, creating further delays and distress.
Shortly afterwards, in November 2024, several Nicheliving-related companies entered external administration, with KordaMentha appointed as administrators.
The last publicly recorded ASIC action against a Nicheliving-associated entity dates to 2015, when Australian Property Alliance Pty Ltd paid $40,800 in infringement penalties over property investment advertisements that promoted home purchases “from just $59/week” without disclosing key financial assumptions.
Nicheliving has maintained that its financial collapse was driven by Covid-era disruptions, government building stimulus pressures, labour shortages and broader supply chain issues.
The AFP has not confirmed what specific conduct its investigation is targeting. Historically, AFP involvement in corporate matters has been linked to serious allegations such as insolvent trading, misuse of funds, fraudulent conduct, misrepresentation, or transactions designed to obscure a business’s true financial position.
