One of two men accused of burning down a $24million heritage mansion is a property tycoon who lives on a romantic mountain estate with a rose-lined driveway packed full of luxury sports cars.

Heavily-armed police equipped with battering rams arrested Steve Nassif, 69, at his plush Wentworth Falls home in the Blue Mountains, west of Sydney, on Wednesday.

Nassif and Adams Kipkosgei Bett, 20, from Punchbowl in Sydney's south-west, were charged with destroying a historic seven-bedroom Northwood home on Sydney's lower north shore in a late-night blaze on September 3. 

Daily Mail Australia can reveal Nassif lives with his wife Christine in a beautiful and lovingly restored colonial-style sandstone cottage, described by real estate agents as one of 'Wentworth Falls finest residences'.

Pictures posted on Instagram by his wife reveal the couple's own stunning dream home, with breathtaking landscaping and finely-manicured gardens that are dotted with religious sculptures and fountains.

Spectacular rosebeds have been cultivated throughout its 3,800sqm grounds, hidden from public view by trees and bushes, with glimpses through to the Blue Mountains beyond.

The pictures also reveal a string of expensive cars in the driveway of the four bedroom home, including a top of the line Jaguar XK-R sports car, Range Rovers and a Mercedes limousine.

Detectives this week also took away a distinctive white minibus van similar to one seen in CCTV footage released by police investigating the Northwood arson in November.

Nassif appeared at Penrith Local Court on Thursday and was granted strict conditional bail before his next appearance at Bankstown Local Court on January 12.

Sergeant Leon Payne argued Nassif shouldn't be granted bail because he has access to 'significant amounts of money' and has a 'link' to the Norwood property's owners, Ouyan 'Owen' Chen and his wife Xiao Hong Li.

Sergeant Payne told the court Nassif had admitted during a police interview he and Mr Chen, a fund and property developer, had gone camping and hunting together in the past. 

There is no suggestion Mr Chen has been accused of any wrongdoing or was involved in the blaze that erupted at the heritage home. 

As part of Nassif's bail conditions, he must report to his local police station daily, not leave his house outside the hours of 9am to 6pm, and not go within 10km of an international port of departure. 

Nassif must also deposit a security bond of $400,000 as part of his bail, which he will forfeit if he fails to comply with his strict conditions.

The court heard Nassif owned a farm worth at least $1.5million and was willing to offer up to $1million surety to get bail, ABC reported.

At Bankstown Local Court on Thursday, Bett, Nassif's co-accused, did not apply for bail, with his matter to return to the same court for a mention on January 12.

Both men have been charged with destroy of damage property by fire or explosives.  

Police are also searching for a third man over the organisation of the arson attack.

Detective Chief Inspector Richard Puffett revealed on Wednesday it had been a tip from the member of the public that had led to the arrest of one of the men. 

The dramatic arrests came two weeks after detectives from the NSW arson squad issued a call for information after investigations seemingly stalled.

On November 29, police released footage of the Northwood street on the night of the fire and asked anyone who may have seen a silver Toyota Hiace van with roof racks driving near Cliff Road at the time to come forward. 

The street CCTV showed the area was completely dark until a ball of fire erupted inside the home. 

An unidentified man was then captured running towards the van a short time after the flames took hold, with police believing he left the scene in the Toyota van.

Specialist Fire and Rescue NSW sniffer dogs were brought in to investigate the fire with the expert animals picking up traces of an accelerant in the ruins of the property.

Despite the best efforts of firefighters, the historic house sustained significant damage with forensic officers determining the fire was allegedly deliberately lit.

No one was home at the time and no injuries were reported.

Prior to the Northwood home being burnt down, the property was one of the largest pieces of privately-owned land in the city, boasting a 46metre water frontage.

The almost 5,000sqm property ran down to the Lane Cove River and is bordered by other Federation properties.

The property had been involved in neighbourhood development disputes for the past five years.

Until late last year when it was reluctantly sold, the waterfront estate was the home of the Rossi family, which Mary and Theo Rossi bought in 1961.

Mary, a TV pioneer and travel business owner, lived there until she passed away at the age of 95 last year having raised 10 children in the house with her husband. 

The Rossi family sold the seven-bedroom house complete with a tennis court and boatshed in November 2021 for $24.1million. 

Its current owner, Mr Chen, also owns the house next-door, which he purchased for $5.6million in 2007. 

It has been reported the developer's plans to knockdown and rebuild the home were denied by Lane Cove Council after the panel argued the proposal would have 'unacceptable impacts' on the heritage home next-door. 

However, later in September the council gave the plans the green light after revisions were made to Mr Chen's original proposal.

The council said the new plans, which had reduced the height of the entire home, had 'effectively addressed the grounds for the original refusal'. 

A council spokesman said at the time the fire had had no sway on the assessment of the development which included a games room, nine bedrooms and a pool.