First strata scheme sold under new laws

The NSW Land and Environment Court is set to approve the first ever sale of a strata collective sale under the Strata Schemes Development Act 2016.

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.