Ausin buyer defaults on One A Erskineville penthouse

The off-the-plan buyer of a double-storey penthouse at One A in Sydney's Erskineville has defaulted.

The developer, Abacus and Linear have moved to re-sell the three-bedroom, 231 square metre offering which comes with two car spaces and storage.

It was purpose-fitted for the original buyer and includes two integrated double-door fridges.

The developers say they have dropped the price on the penthouse to "meet the market".

The newly completed building at 1A Couson Avenue offers 175 apartments on a site bought for $32.55 million in 2015.

Fairfax Media reported its Chinese buyer, facilitated by beleaguered Chinese-based agent Ausin, failed to settle its purchase.

The company's China business collapse resulted in 130 failed residential property settlements in Australia.

More than 100 Chinese property investors lost millions of dollars in deposits and payments for off-the-plan houses and apartments in Sydney, Melbourne and Brisbane. 

Ausin's China business has been accused of misappropriating tens of millions of dollars in settlement and deposits.

The Chinese investors were advised that the Ausin properties seemed like a great wealth management product, which guaranteed a five-year lease and 10% return.

The investors turned to Ausin because the agency had found a way to circumvent China's capital outflow restrictions which restrict them from sending more than the equivalent of US$50,000 out of the country.

They said they would pay Ausin in yuan, and it would find its way to Australia.

They estimate the entire amount lost by property investors through Ausin is 358 million yuan.

The Chinese investors are banding together to press their claims for more than $60 million.

The group is led by Chinese businessman Qu Haotian, who estimates that as many as 300 Chinese families may have been harmed by the collapse of Shenzhen Ausin Investment Consulting Group in August.

Qu asked The Australian to disguise his real name for fear of reprisals.

They are planning legal action against Ausin Group's Australian operation, which is still solvent.

The Chinese-based company, which was run by businessman Jin Tianyou, had a marketing agreement with the Australian company to use its name and refer prospective clients from China.

ASIC records show Jin was also a director of Ausin Australia from 2009 until February.

The Ausin Group in Australia has cut its ties with the Chinese company.

It has issued a statement saying it is “saddened by recent allegations of fund misappropriation in China against its Chinese marketing partner” and is working with NSW police on the issue.

Qu estimates the total amount lost could be $60 million.

Ausin Group (Australia), in a statement, said it had sold more than 8000 properties over the 10 years of its marketing agreement with the company in China.

It said payments made directly to Jin were in breach of his company’s agreement with Ausin Australia.