The use of owners corporations (formerly known as body corporates) in land estates is not a new concept. In fact Maddocks was involved in establishing many early Victorian estates drawing on this structure, including the Sanctuary Lakes Golf Club project in Point Cook and Waterways in Keysborough. More recently, we have advised on a number of significant projects utilising owners corporations structures such as Waterline Place by AVJennings and Wyndham Harbour.
In recent times however, we have seen more of our clients in the land development sector exploring the option of an owners corporation in their land estates to take advantage of the opportunities this structure creates in response to more challenging market conditions.
Fundamentally, owners corporations in the land estate context are used to deliver shared facilities and services in a structured way. Historically, these facilities have included amenities such as golf courses and other high-value assets. Recently, we have seen active assets including residents’ clubs with swimming pools, gymnasiums and tennis courts and even commercially-operated water parks.
The most exciting new developments we’ve seen are those exploring the opportunities owners corporations have to unlock and deliver sustainability and affordability initiatives, such as embedded energy networks for the sharing of battery-stored solar energy and innovative structures reserving future commercial opportunities for developers.
With increasing challenges on the residential market to meet purchasers’ and policy makers’ various requests from affordability to sustainable and energy efficient housing, developers should consider the option of utilising an owners corporation in their land projects as a way to differentiate and create alternative offerings to the market.
Maddocks has advised many clients in structuring and delivering owners corporation structures in land estates, including on the risks and disclosure requirements associated with their implementation. If you are considering such a structure for your future projects, please contact us.
|Nick Holuigue | Partner
T +61 3 9258 3865
|Adam Jaques | Senior Associate
T +61 3 9258 3580