Key Takeaways
- Residents of Victopia Apartments were able to return to levels four and below as of January 9 this year
- A $4m loan was secured to pay for the remaining works, with $2.9m drawn to cover the shortfall
- Recladding the tower with new panels is 85% complete
- The basement levels are being transitioned from the contractors to the owners, allowing residents to access their carparks again
- The total repair cost is estimated to be $72m, up from $66m-$67m earlier this year
Introduction to the Repairs
The Victopia Apartments, located at 135 Victoria St West, have been undergoing significant repairs since last decade. The repairs were necessary to address defects in the building’s cladding, balconies, and podium, which were identified in 2012 by specialist Maynard Marks. The body corporate estimated that the costs of the repairs would be around $42m, although some savings might reduce that to $40m. However, the total repair cost has since risen to $72m. The repairs have been carried out by Teak Construction, and the work is nearing completion.
Update on the Repair Progress
In an update sent to owners on November 9, chairman Dariusz Koper stated that contractors would focus on removing scaffolding at the top of the block. A doughnut-shaped scaffold at the top of the building is scheduled to be removed by January 8, and full site disestablishment is anticipated by February 3. Additionally, documents are being compiled to seek a code compliance certificate from the council. Koper also noted that glass balustrades are being installed on several levels in the final stages of the work. The recladding of the tower with new panels is 85% complete, and owners are able to access their carparks in the two basement levels again.
Loan Secured for Remaining Works
A $4m loan has been secured to pay for the remaining works, with $2.9m drawn to cover the shortfall. The loan was borrowed from Australian-headquartered MOD Finance, a specialist financier of body corporates. MOD Finance provides tailored funding solutions for complex funding requirements, and has developed a specialist lending solution for the New Zealand market. The loan will help to ensure that the repairs are completed to the required standard, and that the building is safe for residents to occupy.
History of the Defects
The defects in the Victopia Apartments were first identified in 2012, when specialist Maynard Marks undertook initial investigations. The investigation found cracks in the cladding on the exterior and tiles cracking on decks on the upper levels. In some cases, the corners of the cladding had fallen off. The body corporate started court proceedings against those involved in 2012, and a claim for $53m was settled out of court with no amount declared. The defects were found to be caused by a combination of factors, including the use of faulty materials and poor workmanship.
Impact on Residents
The repairs have had a significant impact on the residents of Victopia Apartments, who were forced to vacate the building while the work was carried out. Residents began moving back last October, but it wasn’t until January 9 this year that people were able to return to level four and the levels below. The repairs have also had a financial impact on the residents, who have had to pay for the costs of the repairs through their body corporate fees. Despite the challenges, the residents are looking forward to being able to fully occupy their apartments again, and to enjoying the benefits of the repaired building.
Conclusion
The repairs to the Victopia Apartments are nearing completion, with the recladding of the tower 85% complete and the basement levels being transitioned back to the owners. The total repair cost is estimated to be $72m, which is significantly higher than the initial estimate of $42m. However, the repairs are essential to ensure that the building is safe for residents to occupy, and to prevent any further defects from occurring. The residents are looking forward to being able to fully enjoy their apartments again, and to putting the challenges of the past few years behind them.