Meriton sells strata management business
Billionaire property developer Harry Triguboff is selling his strata management business in response to the NSW strata reform laws which start on 30 November 2016.
Triguboff, who founded Australia’s largest apartment developer Meriton, is pointing the finger squarely at changes to the law in NSW. He said the incoming laws ‘effectively shut developers out. We are veterans in this business and haven’t taken the decision to exit it lightly.’
Mertion Strata Management look after 6,194 lots spread over 33 schemes. A total of two-thirds of the strata-management schemes in Meriton’s portfolio are under contract until 2018 or longer.
With over one quarter of the state’s population now living in strata apartments, the government has made 90 changes to the existing laws which includes locking developers out of having any role in the strata management of the properties they build until the building is 10 years old.
Triguboff said the new laws meant Meriton, as a building developer, wouldn’t be able to play a role in managing its new developments.
‘We’ve always run our own ship at our own developments and things have gone swimmingly and with great success.’
Meriton Strata Management general manager Ryan Walmsley said ‘Our portfolio will offer a great addition for any operator on the expansion trail. They will be buying well-maintained schemes that are big and viable – they have an average of 188 lots.’
He said that it had been evident for some time that strata-management companies were jostling for position and aggressively targeting acquisitions.
The NSW Property Council believes the 90 changes to existing laws will improve the accountability of strata managers, establish a transparent process for the collective sale and renewal of strata schemes, and introduce a simpler, clearer process for dealing with disputes.
‘More than two million people in NSW own, live or work in strata titled buildings. The changes represent the first major reform to the strata laws since 1973 and will bring the legislation into the 21st century. As a consequence, the Property Council has been largely supportive of the reform package,’ said NSW Property Council executive director Jane Fitzgerald
You might be interested in:
- Small Living Room Ideas to Make the Most of Your Space
- Calling an extraordinary general meeting – NSW
- Replacing a strata committee member
- Requirements of Large Strata Schemes
- Calling a Strata General Meeting?
- Owners Corporation Insurance Requirements in Victoria
- What are Prescribed Owners Corporations in Victoria?
- The Strata Camel
- Schoolies starts this weekend | Are you prepared?
- Food scraps recycling trial