Client or Situation Overview
A large residential strata scheme in Western Sydney, comprising 208 lots, required funding to undertake extensive remediation works addressing waterproofing, water ingress, balustrade replacement, and fire safety defects.
Challenge / Problem
- Extensive building defects, including waterproofing, water ingress and fire compliance issues
- Multiple concurrent workstreams delivered by five contractors with complex project management
- Hight project value with different owner preferences regarding funding solution
- Risk of owner resistance and/or delays
Solution / Approach
Firstrata structured a $9.1 million Hybrid Strata Loan that funded the full scope of works, supported progressive drawdowns, and provided a 15-year term, allowing owners to choose between paying upfront and avoiding strata loan interest or borrowing over time.
Funding Structure
Results / Outcomes
- $9.1M fully funded
- Owners given genuine choice, improving alignment and removing conflict
- ~60% of owners chose to use their own funds and paid upfront
- Multiple programs of work funded through one hybrid loan facility, streamlining ongoing administration
- Project planning commenced without delay.
Client Testimonial
“The team at Firstrata Finance was exceptionally helpful. They responded to every query promptly and made the complex process of strata financing feel seamless. Their quick turnaround times and proactive communication were exactly what we needed to get this project moving. A big thank you to the team for their support!”
Key Takeaways / Lessons
- Hybrid funding models can support large-scale, multi-contractor remediation programs
- Owner choice remains key to achieving alignment in large strata schemes
- Progressive draw structures across multiple works programs can be funded with one hybrid loan facility only, simplifying the administration effort for strata managers