Owners of Sydney’s troubled Mascot Towers apartment will be asked to look at selling up after an almost $4 million increase in costs to fix the apartment complex.
Plans are under way for an extraordinary general meeting where apartment owners will be asked to consider selling the complex or changing its function following an escalation in remediation costs, a statement from the Mascot Towers owners corporation says.
The 132-unit residential block was evacuated in June 2019 after cracks were found in the primary support structure and facade masonry.
Engineering advice suggested the cracks have continued to widen as new ones develop.
“Additional costs include an allocation for $3.8 million for repairs to the building’s brick facade following issues with cracking earlier this year,” the statement from the owners corporation said on April 16.
A spokesman for the corporation said 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.”
At an annual general meeting in October, owners voted to enter into a minimum $5 million, 15-year commercial loan to fund repair works instead of using a previously-approved special levy.
“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 spokesman said.
A range of options will be presented to owners at the meeting. for which a date has not yet been set.
The on-sale of the building was not ruled out while another option was repurposing the complex for affordable housing accommodation.
Any decision about the future of Mascot Towers will not prevent legal action continuing, the owners corporation said
