Client or Situation Overview
A large mixed-use strata scheme in Hornsby, NSW, comprising 154 lots, required funding to address essential fire safety compliance works while also managing an existing loan facility.
Challenge / Problem
- Urgent fire damper remediation works
- Existing strata loan with ~27 months remaining
- Staged works over 12 months
- Diverging owner preferences:
- Some owners wanted to pay out their share of the existing loan and fund their portion of the upcoming works upfront
- Other owners required access to financing over time
- Risk of disagreement or delays without a flexible funding solution
Solution / Approach
Firstrata structured a $2.7 million Hybrid Strata Loan that refinanced the existing loan, funded fire remediation works, and allowed owners to choose between paying upfront and avoiding strata loan interest or borrowing over time.
Funding Structure
Results / Outcomes
• $2.7M fully funded
• Critical fire safety upgrades commenced without delay
• Existing debt streamlined into a single facility
• Owners given genuine choice, improving alignment
• Minimal levy impact
Client Testimonial
“Firstrata provided a solution that balanced the needs of all owners. The ability to refinance the existing loan and fund essential works in one facility, while still giving owners flexibility, made the process far simpler and allowed us to move forward efficiently.”
Key Takeaways / Lessons
- Owner choice is often the key to unlocking agreement in large schemes
- Hybrid funding models can resolve conflicting financial preferences
- Refinancing and new works can be efficiently combined into a single structure
- Flexible funding enables compliance projects to proceed without delay or dispute