It’s over! Mascot Towers saga ends with owners agreeing to sell
The nightmare has ended for owners stuck in unliveable and unsellable apartments in Mascot Towers.
NSW
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Owners of apartments in the notorious Mascot Towers complex are a step closer to being free of their five-year nightmare after the required majority was reached this week in order for a sale to go ahead.
However the sale will be bittersweet with the owners to receive far less than the original purchase price of their units, despite the addition of a NSW government package.
Under a deal brokered by the Minns government, the third party buyer required 75 per cent of owners to agree to sell their properties in return for owners getting a share of the $30 million building price.
On top of the sale price, owners will also receive means-tested assistance packages.
The complex is made up of 132 residential and nine commercial lots.
It is estimated the average NSW Government payment to eligible owners will be about $120,000 — with the total cost expected to be around $17 million.
The final cost will not be known until the eligibility of each owner has been formally assessed by the NSW Building Commission.
Proceeds from the sale of each unit will be used to reduce mortgage liabilities, with lenders having agreed in principle to reduce loan balances by up to 40 per cent.
The Mascot Towers saga has been running since 2019 when owners were evacuated after cracks were found in walls.
Despite being unable to live in the complex, owners have been forced to pay levies, mortgages and remediation costs.
As part of the deal, the NSW Building Commissioner David Chandler was mandated by the NSW Government to negotiate with mortgage lenders to reduce debts and let owner-occupiers move out of Mascot Towers debt free.
The deadline for agreement has also been extended to March 28 to give owners wanting to move out extra time, although the government has confirmed the 75 per cent threshold was reached.
Work is now underway to assess owners against the means test for government support and ensure that owners have arrangements in place with their lenders.
Fair Trading Minister Anoulack Chanthivong said the deal closed the book on “one of the darkest chapters in building in this state”.
“After half a decade stuck in this nightmare, it appears that 75 per cent of owners have now agreed to sell to a third-party buyer and move on,” he said.
“Mascot Towers owners have suffered for years, this outcome can’t change that but it will finally let them leave this saga behind and get on with their lives.
“Owners have been stuck in a purgatory of legal challenges and remediation costs for too long, this is finally a chance for them to break free.
We’re providing targeted support so that owners who want to move on can do it.”
MASCOT TOWERS NIGHTMARE
2008: Mascot Towers completed and certified for occupation by Botany
Council
2011: Mascot Towers Owners Corporation first observe cracking in structural elements
2013: Complaint lodged with Fair Trading and Rectification Order issued
2015: Owners Corporation takes legal action against original developer but structural defects not included in court action
2016: Owners Corporation settle legal action against original developer
2017: Owners Corporation engages engineers to investigate further defects
2018: Engineers identify further structural defects
2019: Mascot Towers evacuated due to significant movement and potential for structural failure. NSW Government provides rental assistance on the basis it is to be repaid from insurance or other means if compensation is later received.
2020: Owners Corporation secures $32 million line of credit to fund remediation work ($15.3 million draw down) All rectification works cease after extraordinary general meeting.
2021: NSW Government extends accommodation assistance package
2022: Owners Corporation reaches confidential settlement with adjoining Peak Towers developer. Owners Corporation sought to dissolve strata scheme through Supreme Court.
2023: NSW Supreme Court rules against application to terminate strata scheme ruling out sale of building.
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Originally published as It’s over! Mascot Towers saga ends with owners agreeing to sell
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