Mascot Towers neighbours sue developer ALAND over structural defects

A property developer has listed $3.8m worth of apartments for sale weeks after owners in the same block launched legal action alleging the building is beset with defects.

Scores of apartment owners in a 12-storey unit block next to the notorious Mascot Towers have launched legal action in the Supreme Court, claiming their property has structural, fire and waterproofing defects.

Meanwhile, despite being sued, a development company behind the block has listed $3.8 million worth of apartments for sale.

About 90 apartment owners in Peak Towers are taking companies ALAND and Church 88 to the NSW Supreme Court alleging “defects and noncomplying work which amount to breaches of the statutory warranties”.

Both companies are directed solely by property developer Andrew Hrsto, 51.

Andrew Hrsto. Picture: John Grainger

Crucially, lawyers for Peak Towers owners are submitting a report about the “structural integrity in the shoring and piling walls” of the Church Ave building.

The court documents were filed May 27. Between June 25 and 29 four two-bedroom apartments owned by Church 88 were listed for sale — each worth at least $970,000.

None of the online advertisements mention potential defects or structural problems.

“The defendants failed to exercise reasonable care to avoid the plaintiff (owners) suffering economic loss caused by the defects identified,” court documents said.

Apartment owners and strata corporation lawyers declined to comment.

The bombshell case could have major implications for Mascot Towers, whose owners are also suing ALAND in separate court proceedings.

Park Towers (left) sits next to the infamous "Mascot Towers" (right).

Mascot Towers wants more than $15m because of alleged negligent excavation at Peak Towers, which was completed in 2019.

It claims ALAND’s work created a void that undermined the structural integrity of Mascot Towers, leading to the building’s evacuation.

ALAND, which is the major sponsor of the Parramatta Eels NRL team, has previously denied any link between Peak Towers construction work and Mascot Towers damage.

Mascot Towers strata chair Gary Deigan said “all of the detailed investigations by our engineers confirm that the culprit is major structural problems in ALAND’s shoring wall and lack of waterproofing and sealing the Peak Towers basement from groundwater inflow”.

Property for sale within the Peak Towers development located at 303/27 Church Ave, Mascot. The property is owned by Church 88 Pty Ltd and was listed for sale June 25, 2021.

Mills Oakley partner Scott Higgins, who is representing Mascot Towers owners, said “we’ll be looking closely at whether there are common issues in the two cases”.

An ALAND spokeswoman said the company is defending the matter and “stands by the quality and integrity of its product”.

“The owners’ corporation naturally has concerns about the allegations that have come from the Mascot Towers proceedings, which Church 88 strongly deny,” she said.

“ALAND will deal with the concerns of the owners’ corporation in due course.”

The private certifier for Peak Towers was Maurice Freixas, who has received three NSW Fair Trading reprimands and $40,000in fines for failing to comply with regulations.

Fair Trading is conducting an investigation into certifier Maurice Freixas in relation to Peak Towers.

Better Regulation Minister Kevin Anderson said “from 1 July, all class 2 (apartment) buildings in this state are protected under NSW’s robust regulatory scheme”.

“Any building that fails to meet our requirements will not be issued an occupational certificate and developers will be required to fix any defects before owners are required to settle on their apartment.

“Furthermore, our legislation has a retrospective statutory duty of care, and applies both to new buildings and those under10 years old, giving consumers new avenues for recourse that didn’t exist under the old regime.”

Mascot Towers sits outside the 10-year warranty period.