01 Sep 2016

CU LAB: Getting the most from NSW strata reforms

If you're a developer doing redevelopments, Eugene Tan explains why you need to understand strata reforms.

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The main reform which is going to be of interest to developer clients is the greater flexibility to enter into renewal processes for a strata. 

Under the existing scheme you need 100% as support of owners in order to collapse the strata scheme and then you can proceed to get an order from the Land and Environment Court.  Under the new scheme, with 75% of support from owners you can enter into a strata renewal process which will enable owners to contemplate the potential to redevelop the strata block by selling off their units and entering into a new redevelopment program. 

Developers who operate in the smaller scale redevelopment and infill space should be actively marketing their blocks to engage with those strata owners of aged blocks which were previously seen as being too inaccessible or too hard to redevelop.  These strata laws are really there to be able to unlock the potential of those blocks.  So if you are a developer in that space you should be out there marketing, telling people about the potential that they have to capitalise on their current assets, and to grow that into a new redevelopment.