Mascot Towers’ owners approve $5 million repairs loan
Owners of flats in the troubled Mascot Towers have entered into a minimum $5 million, 15-year commercial loan to make repairs.
Banking
Don't miss out on the headlines from Banking. Followed categories will be added to My News.
Owners of apartments at Sydney’s problem-plagued Mascot Towers will enter into a $5 million loan after some were unable to meet the payments of a $7 million special levy.
The 132-unit block was evacuated in June after cracks were found in the primary support structure and facade masonry, with recent advice suggesting they are continuing to widen as new ones develop.
At a four-and-a-half hour annual general meeting attended by more than 100 people on Tuesday, owners voted to change how they would pay for the repairs needed to make the building liveable.
A small percentage had difficulty obtaining the funds for their $60,000 share of the $7 million special levy and will now enter into a minimum $5 million, 15-year commercial loan.
“The effect that has is it will reduce the repayment commitments of the owners to a smaller amount over a longer period of time,” spokesman Patrick McGuire told AAP.
“A range of owners expressed that either they or other owners were facing financial hardship and as a result of that a range of them weren’t able to meet their obligations.” Earlier, Mr McGuire had pleaded on behalf of the ownership group for developers of a neighbouring block to “do the right thing” and allow engineers inside to help end their own nightmare.
He again called for Aland to allow Mascot Towers engineers access to its neighbouring Peak Towers development to help provide the fastest and cheapest solution.
Aland has been contacted for comment. The company previously told AAP it’s confident an independent investigation will confirm issues at Mascot Towers are unrelated to nearby construction.
Engineers say they need access to Peak Towers as they conduct urgent work to ensure soil under the building’s foundation slab can bear the force of the necessary repairs.
Mr McGuire says tests have revealed a loss of soil from the areas next to Peak Towers building owned by Aland.
That’s where the Mascot cracking and structural problems first appeared, he said.
“If Aland is confident Peak Towers is not of any cause for concern for Mascot Towers, then they should have no difficulty in allowing our engineers access to the site,” Mr McGuire said on Tuesday.
Originally published as Mascot Towers’ owners approve $5 million repairs loan