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$50m cost blowout could force Mascot Towers mass sale
Unit owners of Sydney’s “cracked” Mascot Towers will now be asked to consider selling off their interests in the property as remediation expenses skyrocket.
The ABC reportedly received leaked letters detailing that rectification works are now expected to cost owners a whopping $32 million.
The funding of such works through a 15-year loan would blow the final bill out to approximately $53.5 million.
An “extraordinary” general meeting will see owners pondering options of either selling the complex or reconfiguring its end use.
A statement said planning for a meeting of owners is underway but has been complicated by COVID-19.
The event will likely be conducted via video link online at a date yet to be fixed.
A spokesperson for Mascot Towers Owners Corporation said that a “range of options” will be presented at the meeting, but the on-sale of the complex is only one option.
“The cost escalation has been significant, and owners have faced the additional burden of personal financial hardship as a result of COVID-19, which has resulted in some owners struggling to pay their loan levies to fund the repair of the building,” the spokesperson indicated.
“We are looking at every option, but the on-sale of the building cannot be ruled out.”
One additional option floated would see the building repurposed for affordable housing accommodation.
But “for many owners, their clear preference is to return to their Mascot Towers apartments, which they called home”.
The reality is that because of cost escalations, this may not be possible for some owners who may not be able to afford the special levies to fund the loan for the remediation of the building.”
Another additional cost includes the allocation of $3.8 million for repairs to the building’s brick facade following issues with cracking earlier this year.
The spokesperson said that while the owners corporation has looked at all options, including the sale of Mascot Towers, nothing has been finalised or advanced.
“The final decision will rest with owners at the EGM.”
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