Mascot Tower owners crumble into bankruptcy

In June 2019, Sydney’s 132-apartment Mascot Tower was evacuated after large cracks were discovered.

Fresh cracks then appeared in February 2020, prompting authorities to close shops and set up an exclusion zone around the building.

Nearly two years on and 132 families remain locked out of their apartments with many lumped with crippling debts.

Today, The AFR reports that Mascot Owners are set to vote on a $40 million proposal to sell the complex as a redevelopment site, which would mean losing up to 80% of their initial property value:

Strata body chairman Gary Deigan said rectification of the 10-storey tower was too costly as the strata body already had a $32 million loan facility – and had drawn down nearly half of it – and would need to raise more than owners could afford to meet the current repair estimate of $38.5 million.

Owners of two-bedroom apartments, for example, were already paying $25,000 a year in levies and other costs on top of their mortgages and could not fork out more…

“It just isn’t viable to fix the building,” he said.

What a horrible end to this nightmare for Mascot Owners who, through no fault of their own, find themselves at the wrong end of NSW’s corrupted development system.

Unconventional Economist
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