6 Grove Street, Dulwich Hill NSW 2203 · 4 buildings · 247 lots · Built 2017
High-level scheme metrics — what every prospective buyer or owner needs to know within 30 seconds.
The owners corporation is in active litigation against builder Ceerose and developer Galileo over systemic defects across all four buildings. A prior settlement deed has been terminated and the matter is now back before the NSW Supreme Court. This is the dominant fact shaping the scheme's finances, governance, and resale dynamics for the next 2–4 years.
The standard NSW strata-due-diligence question set. Green left-bar = primary-source confidence; amber = secondary evidence only. 17 of 19 answered with primary-source confidence.
The combined Admin + Capital Works equity of the owners corporation has fallen from $590,160 (1 Aug 2025) to $260,244 (24 April 2026). The May 2026 special levy instalment will materially restore the position.
| Component | Admin Fund | Capital Works Fund | Total |
|---|---|---|---|
| Cash at bank | $61,495 | $483,388 | $544,883 |
| Investments (term deposits) | $0 | $0 ↓ from $386k | $0 |
| Receivables (levies + other) | $9,976 | $1,389 | $11,365 |
| Less: liabilities | ($144,856) | ($151,148) | ($296,004) |
| Fund equity | ($73,385) | $333,629 | $260,244 |
FY24 financials independently audited by CBC Partners (Domenic A. Cutrupi, Partner) — opinion dated 15 August 2024, unmodified (clean). The CWF investments fully redeemed during FY25–26 to fund expert investigations and legal costs ahead of the EGM 16/02/2026 special-levy resolution.
| Lot | Unit | Owner | Admin | CWF | Special | Total |
|---|---|---|---|---|---|---|
| 190 | 2203 | Alistair George Whittaker | $2,906 | $458 | $359 | $3,722 |
| 103 | 1301 | Pamela & Peter Skouteris | $2,745 | $433 | — | $3,178 |
| 79 | 1011 | Jennifer Tucker | $457 | $72 | — | $529 |
| 197 | 2211 | Jenjira Brandwood | $94 | $15 | — | $108 |
| 76 | 1008 | Doan Quoc Bao Nguyen & Jacqueline Sze-Wing Kot | $40 | $6 | — | $46 |
| 205 | 2305 | Naomi Urban & George Niahos | $37 | $6 | — | $43 |
Authorised by EGM 16 February 2026 (Motion 7) under s81(4) SSMA 2015. Funds investigation, legal costs, and scope-of-works preparation — not actual rectification works. Two parallel $2M loan motions (StrataCash, Lannock) were both defeated.
| Fund | Per UE per year (inc GST) | Scheme-wide annual revenue |
|---|---|---|
| Administrative Fund — standard levy | $122.86 | $1,228,594 |
| Capital Works Fund — standard levy | $20.12 | $201,207 |
| Combined ordinary annual rate | $142.98 | $1,429,801 |
| Lot | Owner | UE | Ordinary annual | Motion 7 total | 12-month total |
|---|---|---|---|---|---|
| 4 | Peng Liu & Yukrob | 24.96 | $3,568 | $2,896 | $6,464 |
| 163 | Stephanie Nieves De · Unit 1813 | 24.22 | $3,463 | $2,810 | $6,273 |
| 1 | Vanbuskirk/Debach | 34.50 | $4,933 | $4,002 | $8,935 |
| 116 | Brennan Ashley Siu · Unit 1501 | 31.56 | $4,513 | $3,661 | $8,174 |
| 233 | Kathleen Britton · Unit 2616 | 41.10 | $5,877 | $4,768 | $10,645 |
| 251 | Diane Margaret Champion | 48.45 | $6,927 | $5,621 | $12,548 |
| 248 | James Howard Farrugia · Shop1 | 54.32 | $7,766 | $6,302 | $14,068 |
The $1.16M Motion 7 levy covers investigation, legal costs, and scope-of-works only. Once FEA, AE&D, and acoustic supplementary reports come in, further special levies for actual repairs are very likely.
| Hypothetical further special levy | Per UE | Lot 163 share (24.22 UE) |
|---|---|---|
| $1,000,000 inc GST | $100.00 | $2,422 |
| $2,000,000 inc GST | $200.00 | $4,844 |
| $5,000,000 inc GST | $500.00 | $12,110 |
| $10,000,000 inc GST | $1,000.00 | $24,220 |
FY 2026–27 ordinary levies have not yet been struck — Proposed Budget shows $0.00 for every line. Real ordinary levies could rise to absorb increasing insurance, building manager and operating costs, on top of the Motion 7 special-levy instalments through to Feb 2027.
Defect categories under active investigation per the EGM 16 February 2026 motions, supplemented by inventory correspondence Nov 2025–Apr 2026. Each building has a distinct profile.
| Date | Expert | Subject |
|---|---|---|
| 09/05/2019 | RHM Consultants | Original general defects |
| 04/05/2020 | Bellmont Façade Engineering | Façade |
| 02/05/2024 | Forensic Engineering Australia (FEA) | Hydraulic — preliminary |
| 13/12/2024 | Acoustic Dynamics Pty Ltd | Acoustic — 20% units sample, $8,650 |
| 13/01/2025 | Koikas Acoustics | Acoustic — supplementary |
| 05/02/2025 | AE&D / AES (Daniel Keato) | Fire & life safety — 101 units (41%) |
| 28/02/2025 | AE&D — AED 9599 Review of Remedial Works | Review of Ceerose's repairs (Deed terminated) |
| 14/08/2025 | Forensic Engineering Australia & Hydraulic Expert | Hydraulic — supplementary |
| 27/08/2025 | Forensic Engineering Australia (further invoice) | Ongoing hydraulic |
| ongoing | Diagnostech | Being finalised (per Chambers Russell, 14 Nov 2025) |
A prior Deed of Settlement and Release with Ceerose under which the builder was to perform repairs per a "Fahrenheit Report" has been TERMINATED. AE&D were engaged to review Ceerose's repairs (AED 9599 Review of Remedial Works dated 28 February 2025) — finding incomplete works which restarted the litigation.
Two acoustic experts engaged. The cafe ventilation system, mechanical plant, sprinklers and basement jet fans have all been investigated as noise sources. Affected units span lower-level (near cafe) and upper-level (near plant) positions across multiple buildings.
| Expert | Engagement | Cost |
|---|---|---|
| Acoustic Dynamics Pty Ltd Suite 2/174 Willoughby Rd, St Leonards |
Engaged via Chambers Russell Lawyers (Nicole Ellul-Thorn) — "Item 3 Preliminary Investigations & Advice (20% of units) for Litigation". Senior Engineer "JC". Reattendance for testing & rooftop inspections 29/03/2024 and 03/07/2024. | $8,650 ex GST Tax Invoice 0019359 · 13/12/2024 |
| Koikas Acoustics Pty Ltd | Acoustic report referenced in insurance Building Defects exclusion clause. Supplementary to Acoustic Dynamics work. | Report dated 13/01/2025 |
All acoustic correspondence carries case reference "CR SYD230148" — the Ceerose/Galileo Supreme Court defects matter. Acoustic defects are formally part of the litigation evidence base, not a separate matter.
The current ARUP Fire Engineering Report (247294 Revision E, 1 March 2017) sets the design standard, but field audits and AE&D expert reports have found the as-built building does not meet that standard in numerous respects. AFSS history shows late lodgements, a council PIN/fine (later withdrawn), and ongoing rectification programme.
Per Waratah Air Audit dated 23 November 2022 — finding has been on the record for over 3 years without rectification. Defects include missing breakaway joins, missing angles, gaps requiring fire mastic, and dampers not correctly located in slab.
AE&D inspected 101 of 246 units (41%) in their February 2025 report. Findings:
| Motion / Option | Coverage | Cost (ex GST) | Status |
|---|---|---|---|
| Motion 3 / Option A | 185 units (100% common areas) | $100,500 | SELECTED |
| Motion 3 / Option B | 124 units (75%) | $75,500 | — |
| Motion 3 / Option C | 62 units (50%) | $57,500 | — |
| Motion 4 / Option D | 35 units internally | $21,500 | SELECTED |
| Total authorised | $122,000 ex GST | = $134,200 inc GST |
A real fire occurred at Unit 5208 on or around 6 August 2025 with significant flooring damage and exhaust fan damage. Multiple inspection reports (06/08/2025 and 20/08/2025), insurance claim correspondence with UBS, and ongoing reimbursement process documented in the library. The non-compliant fire compartmentation in the building is not theoretical — fire risk has been realised in this scheme.
The owners corporation sits at the centre of three parallel proceedings. Two it is prosecuting; two it is defending. All flow from the same building defects programme.
Last orders 13 November 2025: directions hearing 14/11/2025 vacated; consent orders made — Second Defendant (Galileo) filing Amended List Response, Cross Summons, Cross-Claim List Statement; First Defendant (Ceerose) to file Cross-Claim Response by 12/12/2025; relisted for Directions on 20 February 2026. Second Defendant ordered to pay OC's costs thrown away.
Paul Jurdeczka · Andrus Must (Senior Associate) · Nastasia Pechanats (Lawyer) · Nicole Ellul-Thorn · +61 2 8248 2800 · Level 15, 25 Martin Place, Sydney NSW 2000
Per Chambers Russell email 14/11/2025: the OC's strategy is to obtain and serve all expert reports detailing defects, then negotiate settlement by way of repair agreement. The developer is pressing for "lay evidence" service, which the OC views as a pressure tactic to force settlement with the builder. The first attempted settlement (Deed of Settlement and Release with Ceerose, referencing the "Fahrenheit Report") has already been TERMINATED.
Ceerose is an established 28-year-old Sydney builder with award-winning marketing, but the publicly-available litigation record shows a recurring pattern of defect cases — including a recent NSW Court of Appeal decision (2025) and an NCAT decision (November 2025) both against them.
Defect claims appear within ~6–10 years of construction completion (typical for the NSW 6-year statutory warranty period for major defects). The defects vary across categories — meaning it's not one specialist problem; it's broad construction quality. When matters reach final judgment, courts have ruled against Ceerose. The recent 2025 Court of Appeal loss specifically established that owners can refuse Ceerose's offer to rectify if they've lost confidence — a finding directly applicable to Arlington Grove (where the Deed of Settlement has already been terminated).
The split between the operating Ceerose Pty Ltd (1998) and asset-holding Ceerose Asset Pty Ltd (registered ASIC 26/09/2017) is a common Australian structure that can have implications for defect-claim recovery — judgment debtors can find the operating entity has limited assets while the wealth sits in related but legally separate companies. Worth a conveyancer's attention.
The iCIRT system (Equifax-administered, NSW Government-backed) was launched specifically to give apartment buyers confidence in builders. Reputable builders publish their iCIRT rating prominently. No iCIRT rating for Ceerose was located in the public register. The NSW Building Commissioner has actively encouraged buyers to prefer iCIRT-rated builders (3-star or higher).
Two distinct roles — strata manager (off-site administration) and building manager (on-site operations). Plus the by-law framework governing what owners can and can't do.
Licence No. 224770
Phone 1300 322 213
info@stratachoice.com.au
GPO Box 5328, Sydney NSW 2001
ABN 14 167 332 069
Phone 02 9056 7100
info@sydneybmp.com.au
PO Box 461, Surry Hills NSW 2095
31 standard by-laws plus 7 Special By-Laws:
Standard Residential Strata Insurance with comprehensive cover, but with a specific exclusion for building defects identified in the named expert reports.
| Field | Detail |
|---|---|
| Insurer / UW Agency | Strata Unit Underwriting Agency Pty Ltd · Underwritten by Insurance Australia Ltd (CGU) |
| Broker | BAC Insurance Brokers Pty Ltd · Account Manager: Priya Bax |
| Policy Number | 06S8012355 |
| Period of Insurance | 26/09/2025 – 26/09/2026 |
| Building & Common Contents | $157,312,550 |
| Premium total (inc GST) | $255,588.06 (paid 25/09/2025) |
| Loss of Rent / Temp Accommodation | $23,596,882 (15%) |
| Catastrophe / Emergency | $23,596,882 (15%) |
| Public Liability | $20,000,000 |
| Office Bearers Liability | $10,000,000 |
| Fidelity Guarantee | $100,000 |
By A G Thomas Valuers (ABN 58 053 159 569) dated 6 August 2025:
| Cost component | Amount |
|---|---|
| Replacement and/or reinstatement cost for all buildings | $109,343,157 |
| Demolition and removal of debris | $7,079,773 |
| Professional fees | $11,799,621 |
| Cost escalation (30 months) | $13,372,904 |
| GST allowance | $14,159,545 |
| Total recommended sum insured | $155,755,000 |
The policy expressly excludes claims for damage caused by defects identified in seven named expert reports: RHM Consultants (09/05/2019), Bellmont Façade Engineering (04/05/2020), AES (05/02/2025 & 28/02/2025), Koikas Acoustics (13/01/2025), Forensic Engineering Australia & Hydraulic Expert (14/08/2025). Any consequential damage flowing from these defects falls back on the OC, not the insurer.
A buy decision rests on three layers: the suburb, the building, and the unit. The earlier sections covered the building. This section establishes the suburb fundamentals and derives a transparent no-defects fair value for Lot 163 — the benchmark the pricing tiers in §14 are anchored to.
Sources: CoreLogic suburb stats April 2026, Domain & realestate.com.au listings, NSW Rent & Sales reports for 2203 postcode. Figures rounded; treat as guidance not appraisal.
| Unit | Type | UE | Sale price | $/UE | Defect disclosure |
|---|---|---|---|---|---|
| Unit 2707 | 2BR + car | ~38 | $1,060,000 | $27,895 | Pre-EGM 16/02/2026 |
| Unit 3206 | 2BR + car | ~38 | $940,000 | $24,737 | Defect-affected unit |
| Unit 2706 | 2BR + car | ~38 | $860,000 | $22,632 | Older sale, lower-floor |
| Lot 163 | 1BR + study | 24.22 | — pending — | — derived below — | Active litigation, Motion 7 |
No recent 1BR comparables visible at Arlington Grove — derivation below uses the 2BR $/UE benchmark. UE counts for 2BR units estimated from typical Arlington Grove allocation (~38 UE = 2BR + car).
Two methods reach a similar answer. The lower of the two anchors the pricing tiers in §14.
Pricing tiers in §14 use the lower of the two methods — $716,000 as the no-defects baseline. This is the more conservative figure and is grounded in within-building $/UE evidence. The suburb-median method ($760k) is a sense-check, not the anchor; the spread between them (~6%) reflects normal valuation uncertainty for a unit type without recent in-building comparables.
The unit currently being considered for purchase ($650k–$750k range). Sits in Building 1 (Kona A) on the top floor — a location with documented unit-specific defects. Market and pricing analysis follow in §14; this section focuses on what is known about this specific unit.
North-east aspect, leafy outlook, floor-to-ceiling glass to balcony, oak timber flooring, contemporary kitchen.
$3,463 ordinary + $2,810 Motion 7 special. Currently in advance by $1,248 — 1 May 2026 net cash due ~$962.
Water leak / failed waterproofing at rooftop hatch — 03/04/2026 and 07/04/2026 emails — Lot 163 sits directly under it.
"Gaps above duct" — Waratah Air Audit Nov 2022. Unrectified for 3+ years. Fire compartmentation at Lot 163's lobby compromised.
Apt 1101 Kona A (Vincenza Zagarella) is severely affected by cafe ventilation noise — Kona A is a noise-affected building.
Property manager (Jennine Edwards, Richard Matthews Real Estate) emailed Strata Choice asking when last AFSS was carried out — flagging active concern.
Both hallways inspected. Findings (78% of inspected units had defects) likely apply to Lot 163's hallway.
Anchored to the $716,000 no-defects fair value derived in §12. Each tier shows what discount the price implies and how that discount squares with the active litigation, terminated repair deed, and Motion 7 special-levy programme.
$610,000 firm, with cooling-off period and three conditional clauses (see §16). If the vendor won't move below $660k, the risk-reward genuinely doesn't justify the purchase against the $716k no-defects baseline.
| Cost item | $650k | $700k | $750k |
|---|---|---|---|
| Mortgage (80% LVR, 6.5%, 30yr) | $39,460 | $42,495 | $45,530 |
| Stamp duty (NSW) | ~$25,200 | ~$27,950 | ~$30,700 |
| Conveyancing & legal | ~$2,500 | ~$2,500 | ~$2,500 |
| Building & strata reports | ~$1,200 | ~$1,200 | ~$1,200 |
| Ordinary levies (annual) | $3,463 | $3,463 | $3,463 |
| Motion 7 special levy | $2,810 | $2,810 | $2,810 |
| Council rates / water / insurance | $2,950 | $2,950 | $2,950 |
| Total Year 1 holding cost | $48,683 | $51,718 | $54,753 |
| Per week | $937 | $995 | $1,053 |
| vs. rent equivalent ($580/wk) | +$18,500 | +$21,600 | +$24,600 |
Break-even = recovering purchase price + total holding costs (mortgage interest, levies, ordinary outgoings) net of imputed rent.
| Price point | Total holding cost (5y) | Sale price needed | Required CAGR |
|---|---|---|---|
| $610k | ~$235k | $735k | 3.8% pa |
| $650k | ~$245k | $780k | 3.7% pa |
| $700k | ~$258k | $840k | 3.7% pa |
| $750k | ~$272k | $905k | 3.8% pa |
Three forward paths for Lot 163's value, anchored to a $650k purchase. Optimistic = builder rectifies + Metro tailwind delivered. Base = mixed outcome with partial recovery. Adverse = Ceerose insolvent, further $5M scheme-wide rectification levy, lender restrictions persist.
Industry forecast for capital city apartments is ~6.7% CAGR 2025–2027 (CoreLogic medium-term outlook). The base case here applies a ~30% defect-overhang drag for the first 3–5 years before partial recovery. Even the adverse case reaches break-even by year 8 if held through.
| Metric | $610k | $650k | $700k | $750k |
|---|---|---|---|---|
| Estimated weekly rent | $580 | $580 | $580 | $580 |
| Annual gross rent (52 wks) | $30,160 | $30,160 | $30,160 | $30,160 |
| Gross yield | 4.94% | 4.64% | 4.31% | 4.02% |
| Less: ordinary levies | −$3,463 | −$3,463 | −$3,463 | −$3,463 |
| Less: Motion 7 special | −$2,810 | −$2,810 | −$2,810 | −$2,810 |
| Less: council / water / insurance | −$2,950 | −$2,950 | −$2,950 | −$2,950 |
| Less: agent (7%) + 4% vacancy | −$3,318 | −$3,318 | −$3,318 | −$3,318 |
| Net rental income (annual) | $17,619 | $17,619 | $17,619 | $17,619 |
| Net yield (after costs) | 2.89% | 2.71% | 2.52% | 2.35% |
Suburb 1BR median net yield is ~2.9% (per Domain Apr 2026). Lot 163 only matches the suburb yield benchmark at the $610k entry tier — at every other tier the special-levy programme drags net yield below market.
Three practical paths over a 24-month decision window. Cost figures are illustrative for comparison, not committed numbers.
Risks weighted by severity and likelihood of materialising over a 5-year owner-occupier hold. High = significant probability of material financial impact.
Specific actions and conditional contract clauses to protect the buyer's position. Each item is a discrete pre-settlement step.
Confidence assessment per question. Only Q11 (formal window safety report) and Q14 (formal pest inspection) remain at secondary level — both are limited by absence of formal compliance reports rather than gaps in the available library.
| Q | Topic | Status | Confidence |
|---|---|---|---|
| Q1 | Lots (247) | ✓ Answered | Primary |
| Q2 | Storeys (4 buildings, 6–10 levels) | ✓ Answered | Primary |
| Q3 | Basement (1 level) | ✓ Answered | Primary |
| Q4 | Admin Fund | ✓ Answered | Primary |
| Q5 | Capital Works Fund | ✓ Answered | Primary |
| Q6 | Special levies ($1.16M EGM) | ✓ Answered with exact resolution | Primary |
| Q7 | Arrears ($7,627) | ✓ Answered | Primary |
| Q8 | 10-year Plan (2018, due for review) | ✓ Answered | Primary |
| Q9 | Strata Manager | ✓ Answered (full SMA details) | Primary |
| Q10 | Building Manager (SBMP) | ✓ Answered | Primary |
| Q11 | Window Safety | ⚠ No formal WSR | Secondary |
| Q12 | Cladding (No ACP confirmed) | ✓ Answered | Primary |
| Q13 | Asbestos (not required) | ✓ Answered | Primary |
| Q14 | Pest Inspection | ⚠ Treatment records only | Secondary |
| Q15 | Defects (full expert list) | ✓ Answered | Primary |
| Q16 | Fire Safety (AFSS 2025) | ✓ Answered | Primary |
| Q17 | Capital Works | ✓ Answered | Primary |
| Q18 | Litigation (3 matters) | ✓ Answered | Primary |
| Q19 | DA / CDC (bollards enquiry) | ✓ Answered | Primary |
| Topic | Document | Library path |
|---|---|---|
| Q1, Q8, Q17 | Capital Works Fund Plan (Sageview, 4 June 2018) | SMATA_1777005256569/.../CWF Plan/...20.pdf |
| Q1, Q2, Q3, Q12 | Insurance Valuation (A G Thomas, 6 Aug 2025) | SMATA_1777004795757/.../valuation report/sp90191.pdf |
| Q4, Q5 | Audit Report (CBC Partners, 15 Aug 2024 — FY24) | SMATA_1777005397935/.../audit report/Audit-Report-...pdf |
| Q6, Q15, Q17, Q18 | EGM Minutes 16/02/2026 | SMATA_1777004083049/.../minute book/General-Meeting-Minutes---16-02-26.pdf |
| Q9 | Strata Management Agency Agreement (signed 01/10/2025) | SMATA_1777004545258/.../Agency Agreement/SP_90191_Agreement_-_signed.pdf |
| Q10 | SBMP Tax Invoice INV-12795 (6 March 2026) | SMATA_1777006195822/.../invoice/sp90191-sbmp-inv-12795.pdf |
| Q15, Q18 | Defects Supreme Court email (Chambers Russell, 14/11/2025) | SMATA_1777004545258/.../defects/Arlington_Grove___The_Owners_-_Strata_Plan_No_90191_v_Ceerose... |
| Q15, Q18 | AE&D Building Report (Ceerose Repairs Review, 18/03/2025) | SMATA_1777005156897/.../building report/AE_D_Report_on_Ceerose_s_Repairs... |
| Q15 | AED Fee Proposal for further fire investigations (30/09/2025) | SMATA_1777004545258/.../emails/AED_Fee_Proposal_for_further_investigations... |
| Q15 (Acoustic) | Acoustic Dynamics Tax Invoice 0019359 (13/12/2024) | SMATA_1777006432521/.../invoice/0019359-...acoustic-defects.pdf |
| Q16 | AFSS T0796-AFSS-2025 (assessed 30/07/2025) | SMATA_1777004545258/.../fire safety/T0796-AFSS-2025.pdf |
| Q16 | Fire Damper Audit — Waratah Air (23/11/2022) | SMATA_1777005489577/.../emails/SP90191_-_Fire_Damper__FD__Audit_Report.pdf |
| Q15 (Lot 1813) | Smoke Alarm enquiry — Unit 1813 (27/03/2026) | SMATA_1777004083049/.../emails/SP90191_-_1813_6_Grove_Street_-_Smoke_alarm.pdf |
| Q19, Q10 | Consolidated By-Laws (25/01/2026) | SMATA_1777004083049/.../by laws/90191_By-Laws-report_25-01-2026.pdf |
| Builder analysis | NSW Court of Appeal — Ceerose v SP 89074 [2025] NSWCA 235 | External — published online (Allens, TGLaw) |
| Builder analysis | NCAT — SP 102171 v Ceerose & Zone Q (20/11/2025) | External — Lawyerly news |
Library mounted from D:\Strata 90191 · 10,063 PDFs across 24 SMATA_* batch folders · ~14 GB · Plus 9 financial PDFs uploaded directly to chat.