Australian billionaire Adrian Portelli has revealed a costly and frustrating disaster with the multi-million pound renovation of his luxury Melbourne penthouse, after an independent inspection suggested significant parts of the work may need to be demolished and redone.
A Dream Project Turns Sour
Portelli, the founder of the rewards company LMCT+, purchased the sprawling 1,200 square metre penthouse in the 'Sapphire by the Gardens' complex for a reported £39 million in 2023. His vision was to transform the space into a spectacular events venue, complete with a cigar bar, private cinema, indoor pool, and a dedicated wellness room.
However, the project, which had an initial contract price of approximately £11.7 million, was plagued by delays and a growing sense that something was amiss. "I had a bad gut feeling. It was meant to be finished 12 months ago," Portelli admitted.
The Shocking Inspection Findings
To investigate his concerns, Portelli enlisted popular TikTok site inspector Zeher Khalil to conduct a thorough assessment. The pair filmed a two-hour tour of the property, later shared on YouTube, where Khalil identified a series of serious construction faults.
Key issues highlighted during the inspection included:
- Major waterproofing failures, with a shower leaking water outside the wet area within minutes of being turned on.
- Incorrectly fitted tiles and wall panels, with one piece allegedly held on only by silicone and "about to come off".
- General workmanship that Khalil stated was not up to standard, leading him to suggest some areas would need to be completely demolished and rebuilt.
"I think it's gonna be a lot of work, man," Khalil told the billionaire during the walkthrough, expressing shock at the leaking shower which could affect floors below.
Financial Discrepancy and Legal Action
The construction woes were compounded by a significant financial discrepancy. Portelli claims that although the original contract was for £11.7 million, his accounts show £15.5 million was paid to the builder.
"This may be like 70 per cent complete, so there's a lot of money that's allegedly going missing," Portelli stated. The builder in question, Black Sheep Building, is reportedly taking legal action against Portelli regarding a separate £14 million contract for a disability accommodation project in Gosford, north of Sydney, which the court ruled in the firm's favour.
Regarding the penthouse allegations, a statement from Black Sheep Building provided to news.com.au said, "Black Sheep Building are aware of these matters, which are currently before the Supreme Court. Comments shall be released in due course." Portelli has said he was unaware of any Supreme Court case specifically relating to his Melbourne property.
Despite the personal cost, Portelli framed his decision to publicise the issues as a matter of principle and awareness. "It's not about the money," he told Khalil. "It's important enough to raise awareness, get the message out there." He hopes their combined audience of millions will help hold builders accountable, noting that if it can happen to him, it can happen to anyone.
