Aland Developments and Mascot Towers have agreed to an out-of-court settlement after it was alleged the developer caused major damage to their homes while working on their Peak Towers project.
The settlement comes after the residents were forced to vacate their homes at Mascot Towers in 2019 due to structural damage caused by excavation work for the Peak Towers basement carpark. Aland opposed this view in court, claiming the neighbouring building was damaged before work began on Peak Towers.
Aland’s Church 88 and geotechnical and engineering companies El Australia and ACE were sued for approximately $15 million in 2020. The NSW Government gave rental assistance to Mascot Towers residents until June 2023 after they were forced to vacate.
“The owners of Mascot Towers have been through enormous emotional and financial strain since the evacuation,” says Mills Oakley’s Scott Higgins who represented the owners at NSW Supreme Court.
“They have ongoing strata levies that they can’t avoid and yet they can’t move back in or sell their units until all the rectification works have been done. They all just want to get on with their lives and put it all in their rearview mirror.”
The owners are now looking to dissolve the strata scheme which will in turn allow for the building to be sold as a development site.
Aland Developments was founded by Andrew Hrsto 20 years ago, and develops 1000 new homes on average a year. Higgins says that both parties were pleased with the outcome of the settlement.
Owners corporation Spokesperson Issac Lean says he expects property stakeholders will support the owners as they look to push for the site to be sold.
“We’re confident that the banks who hold mortgages along with other stakeholders, like Lannock Strata Finance, will do the right thing by owners and get behind the termination and sale process.”
