The decision is the first time that the provisions of the Act have been tested where the sale or redevelopment of a strata scheme only requires 75 percent of the owners to agree. The Court is required to approve the application if a number of criteria are satisfied including that the sale is just and equitable.
The scheme itself is a 159 lot strata scheme currently operating as serviced apartments across 19 floors. It is now set to be converted into a new hotel for the CBD.
The original story was published by The Real Estate Conversation in early August.
It’s a great example of the new legislation in action and should be a good assurance for other schemes thinking of selling or redeveloping that this is possible.
There is a process to go through and any owners considering this major step should engage a legal professional to guide them through.
The benefits of redevelopment can include a new home in your old place. Some apartments built in the 1970s and 1980s are potentially reaching their use-by date and may benefit from a redevelopment which could incorporate new energy efficiency measures and better communal areas.
While the building industry does not have a good reputation at present, its anticipated that this will improve and so redevelopment may be a great option.