Government’s $48 million windfall from faulty Opal Tower

The NSW government pocketed millions of dollars from the sale of the Opal Tower apartment development, The Daily Telegraph can reveal. It comes as tower residents are still without answers as to why concrete inside the structure began cracking.

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The NSW government pocketed nearly $48 million from the sale of the Opal Tower apartment development, The Daily Telegraph can reveal.

It comes as tower residents will have to wait at least another week to learn the results of the government’s investigation into concrete cracking that triggered their forced evacuation.

The Telegraph understands the report — which was due to be handed down today — will trigger a review of the way precast, load bearing structural walls are bolted in high rise apartment complexes across Sydney.

Residents are still waiting for the results of a government investigation into the cracking. Picture: Dylan Robinson

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After repeated questions from The Daily Telegraph, the Sydney Olympic Park Authority (SOPA) said “the total value of the transaction was $47.9 million”.

The government agency denied any ongoing liability, or profit share arrangement.

It has previously confirmed the deal required the developer Ecove to supply SOPA with 11 apartments which are used as affordable housing apartments.

“The development was the subject of an extensive open market government tender process,” Ecove director Bassam Aflak said.

The displaced Opal Tower residents must now wait until next week before any hope of returning to the high-rise tower as a NSW government report into the cracking has been delayed.

Ecove Director Bassam Aflak. Picture: Tim Pascoe

An initial report, by two independent experts appointed by Planning Minister Anthony Roberts will not be made public today, was expected to be released today but The Daily Telegraph understands it’s been delayed.

Professors Mark Hoffman and John Carter, who have met with engineers over the past fortnight, signalled last Friday they would be able to update residents today.

In the latest remedial work, safety netting has now been placed around the 10th floor of the apartment high-rise which showed the first signs of cracking on Christmas Eve.

Industry sources believe the delayed report will trigger a review of the way precast, load bearing structural walls are bolted within high rise apartment complexes across Sydney.

Building codes will come under scrutiny following the report’s release, along with the prospect of stricter compliance and enforcement measures required by state governments and local councils.

The chairman of SOPA, John Fahey, the former Premier who helped secure the Olympics for Sydney, is also chairman of the Australian Building Codes Board.

Workers enter Opal Tower. Picture: Dylan Robinson

Ecove had won architectural praise for its innovative building with high-rise garden slots which were a way to “invite some of the parkland into the building.”

The design has been described by Professor Hoffman as “unique”.

The cracks, identified as adjacent to the gardens, triggered the dramatic evacuation of owner occupiers and tenants over safety and access concerns from the Opal Tower only four months after completion.

Sales ranged from $505,000 up to $2.498 million for its penthouse which ranked as the record price for the precinct.

Even before the cracking, sellers have incurred small losses, after costs such as stamp duty and estate agent commission, with one 12th floor one bedroom, with study unit sold at $640,000, having been for $637,000 off the plan in 2014.

SOPA has also noted that demand for new apartments had “dropped significantly” over recent years.

“While previously strong demand for new stock saw excellent take-up of apartments in new residential projects, market reporting and pricing corrections across the residential property market saw this demand drop significantly.”

“Enquiries have slowed significantly compared to previous years.”.