There are many factors to consider when selling a property. Particularly where multiple parties are involved who might not be able to reach an agreement.
Appointed as statutory trustees, Pilot helped facilitate the highly successful sale of the iconic Gold Coast beachfront resort ‘Nobby’s Outlook’ for $23.75 million.
As an independent third party, Pilot Partners could navigate the stakeholders involved towards the best possible resolution.
Pilot helped the owners, many of whom were retirees, move on with their lives after decades of failed attempts to sell.
The sale also set a benchmark for resolving future disputes providing an alternative strategy to onerous strata scheme laws requiring owners to agree to a sale.
Nobby’s Outlook was an ageing apartment block on prime beachfront land consisting of 46 units all on separate titles and a body corporate managing the common areas. Located in a popular coastal location, it was found that the building required significant repairs. The majority of the owners were unwilling to contribute the funds to enable the repairs and attempted to sell their units to a developer who had offered a large sum of money to purchase the lot in its entirety.
The owners were required to dissolve the body corporate to sell the entire apartment complex but, as is often the case, they were unable to gain the agreement of all unit owners.
The body corporate with their legal advisors sought court approval to dissolve the body corporate and amalgamate all of the individual lots and common areas onto one title to facilitate a sale.
The court appointed Pilot Partners as trustees to sell the property on behalf of the owners after the building’s body corporate successfully sought a court order to abolish the community titles scheme to enable the sale to occur.
Pilot Partners faced several challenges to ensure a successful outcome for the owners. These challenges included:
- Obtaining vacant possession of the block of units where a number were owner occupied or let out on long-term arrangements.
- Liaising with the now-dissolved body corporate and more than 90 owners to ensure clear lines of communication about the process and decisions.
- Dealing with legal challenges attacking the sale proceeds to satisfy outstanding liabilities of the body corporate. This involved negotiating a commercial outcome for all parties.
- Liaising and dealing with more than 15 mortgagees.
- Orchestrating a once-in-a-lifetime opportunity sale to ensure the best possible result.
- Liaising with the Australian Tax Office regarding the implications of Foreign Resident Withholding Tax on the sale of the property.
How Pilot Helped
For many owners of the property, a significant amount of their life savings were contained within their unit’s value. With our expertise, we were able to navigate the challenges with a level commercial outlook and communicate with the stakeholders throughout the process to achieve the best outcome for all involved.
Appointing a trustee can take the emotion out of the sales process for multiple parties with differing agendas and puts it in the hands of an independent third party who is obligated to act in their best interests.