The occupants of Mascot Towers and the developer they recently settled with, whom they blame for the cracks that forced them out onto the streets with nothing more than what they could carry, are the subjects of a narrative of contrasting fates.
The settlement was negotiated outside of court with Aland Developments, which was founded by Andrew Hrsto.
Hrsto recently closed on a $19.5 million mansion with expansive sea views in the upscale Sydney district of Vaucluse as part of a personal real estate transaction.
Tenants of Mascot Towers in Sydney’s south were told four hours to leave after grave fractures were discovered in the building’s basement on June 16, 2019.
Apartment owners sued Aland for more than $15 million in damages, claiming construction on the nearby Peak Towers skyscraper was to blame for the damage.
Mr. Hrsto vehemently asserted that engineers conducted a report of surrounding structures before work on Peak Towers began and that there was photographic proof that the problems in Mascot Towers were present earlier.
The owners of the Mascot flats have been in a financial quagmire for the past three years since they are unable to live there, rent them out, or sell them, but they are still required to make strata levies and mortgage payments.
Since the 132 owners were forcibly removed from the hazardous building in 2019, the NSW government has provided rent assistance, which is scheduled to cease in June 2023.
The Vaucluse house features spectacular views of Sydney Harbour and is situated on a 600 square meter lot.
It is located just two doors away from the La Mer Mansion, which was purchased by billionaire James Packer in 2015 for $70 million.
The undisclosed settlement, according to Scott Higgins, the attorney defending the Mascot Towers owners in their NSW Supreme Court negligence claim, would be a huge relief.
He told the Sydney Morning Herald that “the owners of Mascot Towers have undergone significant emotional and financial distress since the evacuation.”
They are unable to avoid their ongoing strata taxes, yet they are unable to sell or move back into their properties until all necessary rectification work has been completed.
They all simply want to move on with their lives and leave everything in the past.
The owners’ corporation’s spokesperson, Isaac Lean, agreed with those ideas.
“We’re optimistic that the mortgage-holding banks and other key players, like Lannock Strata Finance, will act in the best interests of the owners and support the termination and selling process.”
Even though the structure was said to be stabilized as recently as April of last year, cracks were still visible.
The owners intend to dissolve their strata scheme in order to allow the building to be sold as a single lot after incurring significant debt to fund their legal defense and building repairs.
The owners of the building claimed that a previous offer of $42 million from a developer would leave them bankrupt.
Gary Diegan, the chair of the owners’ corporation, and his wife Marie are now compelled to rent their Mascot Towers apartment after purchasing it entirely.
The couple is also responsible for paying the mortgage, water, and council taxes at Mascot in addition to the rent in their temporary residence.
In April of last year, Mr. Diegan told A Current Affair, “What we don’t understand is how the government can’t protect us and don’t have the legislation in place in a first world country like Australia.”
When the Mascot Towers building had to be shut down, Anthony Najafian was renting out his apartment there.
His family is now millions in debt, paying off two mortgages while leaving one unoccupied.
“We felt safe and well-protected,” they said.
He said to Nine News last month, “I just wouldn’t have anticipated that my place would just entirely disappear.”