Case Study: Grand Reef, Dee Why

Grand Reef, a 109 unit apartment complex in Dee Why on Sydney's northern beaches, had a lot going for it when it opened several years ago.  The one, two and three-bedroom apartments were modern, spacious and sunny, with huge balconies, public transport outside, undercover parking, ground floor shops and a location right in the heart of Dee Why's shopping centre, not far from the beach.

Unfortunately, "although our apartment block was relatively new, it proved to contain a host of building defects which were damaging individual units and the block as a whole," says Noel McDermott, Owners Corporation Chairman. "With 109 units, we had to act quickly."

"The loans from Lannock enabled the owners to pursue an insurance claim and litigation," says Laurie Kennedy, Manager from Forte Defects Consulting.

Michael Leigh, Secretary of the Owners Corporation, was in charge of the building's court action which they won in 2010 "after five long years."  "If it were not for the financial support of Lannock," says Michael, "we would never have been able to win our claim.  We are so grateful that Lannock was able to support us through this stressful period."

Noel McDermott recalls: "The executive committee made the decision in 2005 that a loan from Lannock was going to be the fastest and most financially effective means of looking after our property.  The choices they gave us, the short time frame from enquiry to receiving funds and the Lannock team's friendly, professional service made the committee's life so much easier and took a lot of pressure off the owners."

While the litigation proceeded, loan funds were also used to repair the actual defects which also prevented further damage.  When the owners won their claim in 2010, they were able to immediately pay out their Lannock loan in its entirety.

For Michael Leigh the proof of the pudding was in the eating. "I am now a complete convert to the concept of strata finance and really think more owners should use it - it makes so much sense - emotionally and financially.  Lannock have been fantastic," he concludes.

"We we would never have been able to achieve such a positive result for the owners without the support of Lannock", agrees Noel McDermott."

Robinson Strata Management - a northern beaches institution for35 years - now manages Grand Reef.

Says Laurie Kennedy, "Grand Reef was an outstanding example of the benefits of strata finance.  I think Lannock's approach is revolutionary.  The service they offer is so worthwhile.  I wish more home unit owners would grasp the potential of strata finance to improve their building and their wealth."