Griffith Central is under administration but is trading as normal. Photo: Griffith Central Shopping Centre/Facebook.
The NSW Supreme Court has approved an application by the administrator of Griffith Central to be paid $371,072 for “complex” work undertaken to manage the shopping centre while it’s been the subject of a legal dispute.
In May 2024, the court appointed Sydney-based business restructuring expert Andre Lakomy as the receiver and manager of two properties owned by businessman Frank Violi – Griffith’s biggest shopping mall and a high rise building in Strathfield, Sydney.
Mr Lakomy has been a third-party administrator of these two commercial properties while the Supreme Court has heard cases on disputed loans worth $22 million, for which Mr Violi was alleged to be one of the guarantors. A mortgage was allegedly taken out over both the mall and his Strathfield property as security under the loan.
The 70-year-old Griffith resident claimed he never knew of or signed the relevant loan documents or mortgages, describing them as “a stitch-up”. He said his identity was stolen and his name was fraudulently signed on various documents.
In a ruling handed down last week, Supreme Court Judge Elisabeth Peden said she was satisfied on balance that Mr Violi was aware of the loan and mortgage documentation and authorised a signature being placed on them.
The effect of this judgement on the Griffith mall and Strathfield property is still to be determined, but the mall will remain trading as normal under Mr Lakomy’s administration in the interim.
Mr Violi has maintained he did not authorise the loans and is considering an appeal.
Meanwhile, in a separate Supreme Court proceeding, Mr Lakomy applied for payment for his work in managing Mr Violi’s assets.
He sought $37,795 for his work regarding the Strathfield building, including administering the sale of this property. His work included obtaining a valuation and insurance for the property, engaging and instructing lawyers and real estate agents, engaging a security firm to preserve the property and accepting an offer of $14 million plus GST. He applied $1.5 million of the Strathfield property sale proceeds to secure a long-term lease at the Griffith mall.
Mr Lakomy sought $371,072 (plus GST) for work undertaken to manage Griffith Central, an amount Judge Peden described as “reasonable and proportionate”.
“While the sum sought is much higher [than for the Strathfield property], the applicant has provided evidence of the work he has undertaken in managing the property,” Judge Peden ruled.
“This includes ‘complex’ negotiations with two parties regarding long-term leases which included arrangements that the landlord contribute large sums of money for fit out. The applicant also attended the Griffith property on four occasions, obtained insurance, engaged a new managing agent for the property, engaged lawyers to draft new commercial leases, managed repair and maintenance issues as well as safety compliance and communicated with the 35 tenants in the building.”
The Judge noted that Mr Lakomy had to communicate with all the parties included in the court proceeding over the disputed loans.
Mr Lakomy also sought $30,804 (plus GST) for work regarding the receivership generally, including reporting to the Australian Taxation Office and other statutory entities, reviewing court orders, preparing forms to submit to the business regulator and meeting with Mr Violi and his lawyers to discuss the properties and the receivership.
Judge Peden accepted Mr Lakomy’s justification of his work and expenses, ruling he be paid a total of $439,671 plus GST for work performed on both Griffith Central and the Strathfield building between 29 May 2024 and 31 March 2025. This money will be paid using proceeds of the Strathfield property sale.
Mr Lakomy declined to comment on the judgement.
As at 31 March 2025, he held net rental income of $217,610 from the Griffith mall tenants.
Griffith Central first opened in October 2007, instantly becoming the biggest shopping centre the town had seen.
It was originally owned by Melbourne-based investors but was purchased by Mr Violi in 2019.
