Strata Property Report · 26 April 2026

SP 90191
Arlington Grove

6 Grove Street, Dulwich Hill NSW 2203 · 4 buildings · 247 lots · Built 2017

Lot 163 · Unit 1813
Prepared for
John Smith
john.smith@email.com.au
Developed by
Dominic Ogburn
Check credentials ›
OWNERS CORPORATION ABN45 406 849 197
MANAGING AGENTStrata Choice Pty Ltd
BUILDERCeerose Pty Ltd
DEVELOPERGalileo Arlington Grove Nominee Pty Ltd
Executive Summary

Summary

Bottom line

A 247-lot Dulwich Hill scheme with extensive construction defects across all four buildings, active Supreme Court litigation against builder Ceerose and developer Galileo, and a $1.16M special levy over four instalments to fund rectification. No ACP cladding, properly insured, properly managed — this is a remediable building, not a structural disaster. Buyers should expect a 2–4 year resolution window, ongoing levy contribution, and price accordingly.

Material risks
  • Active litigation, three live matters — NSW Supreme Court (2023/315882) v Ceerose & Galileo · NCAT (2025/00296898) Farrugia v OC · threatened claim Lot 233.
  • $1.16M special levy over 4 instalments through Feb 2027 to fund defects litigation costs.
  • Extensive defects across all 4 buildings — 191 units (78%) affected by failed waterproofing alone; hydraulic, fire & life safety, basement flooding, façade, acoustic.
  • Net Owner Funds down 56% in 9 months — $590,160 (1 Aug 2025) → $260,244 (24 Apr 2026).
  • Capital Works Plan dated June 2018 — almost 8 years old, materially out of date, past s80 5-year review interval.
Mitigating factors
  • No ACP cladding — definitive per Insurance Valuation 6 Aug 2025; construction is cavity brick, part rendered, part metal clad.
  • AFSS current 2025 — lodged 30 July 2025 by accredited practitioner F049448A.
  • Strata Choice professionally engaged — Mark Loveridge, Licence 224770, 36-month agreement to October 2028.
  • No asbestos register required — construction completed 2017, well after the 2003 Australia-wide ban.
  • Insurance sum insured $155.8M — A G Thomas Valuers, 6 August 2025; cover broadly aligned to replacement cost.
High Primary-source verification across financials, insurance valuation, court records and accredited reports. Two topical areas — window safety devices and pest inspection — rest on secondary evidence only.
About This Report

Pre-purchase forensic analysis.

A snapshot of the scope, scale and outcome of this specific job — what we processed, in how long, and what the client said about the result.

Scope of work

The client engaged Access Property Services to conduct a forensic strata analysis on Lot 163 at Arlington Grove ahead of a contemplated purchase. The complex was known locally for construction defects and litigation, and the standard 3-year strata report from a generalist provider hadn't revealed enough detail to make an informed pricing/purchasing decision.

Dominic and the AI document analysis tool processed the full strata library — every minute, financial statement, expert report, invoice, and item of correspondence going back to scheme registration in 2017 — to assemble the complete defect and litigation picture across all four buildings, then organised the findings into a scannable topical structure with primary-source citations throughout.

10,039
Documents
processed
1,407
Invoices
analysed
9
Years of
records
2
Days turnaround
AFTER STRATA RECORDS ACCESS
i
Outcome

After reading this report, the client decided not to proceed with the purchase and elected to pay the contract cancellation fee. They concluded that the long-term cost of going ahead would substantially exceed the fee to cancel.

PART 01
01 At a glance
02 Property overview
Property Overview
The property file as scannable cards, with a key-numbers dashboard up top.
01 · Property At A Glance

Key numbers

High-level scheme metrics — what every prospective buyer or owner needs to know within 30 seconds.

Lots
247
10,000 unit entitlements
Buildings
4
Kona · Valencia · Hamlin · Verna
Storeys
6–10
+1 basement carpark
ACP Cladding
No
Confirmed by 2025 valuation
Net Owner Funds
$260k
↓ 56% in 9 months
Special Levy (EGM)
$1.16M
4 instalments to Feb 2027
Active Court Cases
3
+ 1 threatened NCAT claim
Insurance Sum Insured
$155.8M
A G Thomas Valuers · 6 Aug 2025
!
Critical context

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.

02 · Property Overview

Property overview

Topical snapshot of the property file — every material element of the scheme as scannable cards, each with the underlying source cited beneath. Green left-bar = primary-source confidence; amber = secondary evidence only.

01 · LOTS
Lot count
247 lots · 10,000 aggregate UE. Plan registered 19 Sep 2017. Lot 248 = Shop1 (commercial). SP 97558 is a subdivision of common property of head plan SP 90191 — not a separate adjacent scheme.
Source: CWF Plan 2018 · Insurance Valuation 2025
02 · STOREYS
Building height
4 buildings, 6–10 storeys + 1 basement. Building A reaches Level 8. Construction date 2017 — cavity brick, part rendered, part metal clad, concrete floors.
Source: Insurance Valuation · AFSS 2025
03 · BASEMENT
Basement carpark
1 basement level containing the carpark. Currently subject to defect rectification works (basement flooding scope-of-works under preparation).
Source: AFSS 2025 · Insurance Valuation
04 · ADMIN FUND
Administrative Fund balance
($73,385) deficit as at 24 April 2026 — primarily a timing issue (Q4 levies not yet raised). Projected year-end: $223,700.
Source: Detailed Balance Sheet 24/04/2026 · Audit FY24
05 · CWF
Capital Works Fund balance
$333,629 as at 24 April 2026. Cash $483k, investments $0 (fully redeemed), liabilities $151k. Net Owners Funds down 56% in 9 months.
Source: Detailed Balance Sheet · Investments section
06 · SPECIAL LEVIES
Special levies
Yes — $1,160,000 inc GST authorised by EGM 16/02/2026 Motion 7, in 4 instalments May 2026 → Feb 2027. Funds defects litigation costs.
Source: General Meeting Minutes 16/02/2026
07 · ARREARS
Levy arrears
$7,627 total across 6 lots. Lots 103 and 190 account for over 90%. Grace Lawyers Pty Ltd handling recovery against 12 lots.
Source: Aged Arrears List 24/04/2026
08 · CWF PLAN
10-year capital works plan
Yes — 15-year plan dated 4 June 2018 by Sageview NSW. Materially out of date (almost 8 years old) — past the s80 5-year review interval.
Source: Capital Works Fund Plan 2018
09 · STRATA MGR
Strata manager
Strata Choice Pty Ltd · Mark Loveridge (Lic 224770) · 1300 322 213 · info@stratachoice.com.au · SMA dated 01/10/2025, term 36 months, $45,695 inc GST p.a.
Source: Signed Agency Agreement
10 · BLDG MGR
Building manager
Sydney Building Management & Projects (SBMP) trading as Apartment Projects Pty Ltd · ABN 14 167 332 069 · 02 9056 7100 · info@sydneybmp.com.au.
Source: SBMP Tax Invoice INV-12795
11 · WINDOW SAFETY
Window safety devices
No formal WSR on file. Only AS1891 height-safety inspection (for window cleaners' anchor points) by Advanced Solutions Group, 2 Aug 2023 — different compliance regime.
Source: ASG Tax Invoice I3838
12 · CLADDING
External cladding
No ACP cladding — definitive per Insurance Valuation 6 Aug 2025. Construction is "Cavity Brick, Part Rendered, Part Metal Clad" — not the high-risk ACP/PE.
Source: Insurance Valuation A G Thomas
13 · ASBESTOS
Asbestos register
Not required — building constructed 2017, well after 31 December 2003 Australia-wide ban on asbestos products.
Source: WHS Reg 2017 · Construction date confirmed
14 · PEST
Pest inspection
No formal report; treatment records only (Greenway Pest Control, quarterly). Bee infestation treated at Units 1701 & 1801 Kona A in 2023.
Source: Greenway service records
15 · DEFECTS
Building defects
Extensive — across all 4 buildings. Hydraulic, fire & life safety, basement flooding, façade, acoustic. 191 units (78%) affected by failed waterproofing. See sections 5–7.
Source: 7+ expert reports · EGM Minutes
16 · FIRE SAFETY
Fire safety services
AFSS 2025 lodged 30/07/2025 by accredited practitioner F049448A. ARUP Fire Engineering Report 247294 Rev E from original construction. Ongoing fire defects investigation.
Source: AFSS T0796-AFSS-2025
17 · CAPITAL WORKS
Capital works program
Extensive — $259,545 newly authorised at EGM. Ceerose actively rectifying Units 2716, 3206, 1801. No FY 2026–27 forward budget yet struck.
Source: EGM Minutes · I&E Statement
18 · LITIGATION
Litigation
Yes — three live matters. NSW Supreme Court (Proc 2023/315882) v Ceerose & Galileo · NCAT (Proc 2025/00296898) Farrugia v OC · plus threatened NCAT claim Lot 233.
Source: Court records · Chambers Russell email 14/11/2025
19 · DA / CDC
Development applications
No formal DA/CDC lodged. Active DA-requirement enquiry with Inner West Council for installation of bollards. Internal renovation approvals (Units 5002, 2305, 2102, 1509) are by-law minor renovations, not DAs.
Source: Inventory emails · Consolidated By-Laws
PART 02
03 Financial position
04 Levy programme
Finances
Net Owner Funds, the levy programme, and the Motion 7 special levy schedule.
03 · Financial Position

Net Owner Funds — 56% reduction in 9 months

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.

$800k $600k $400k $200k $0 $694k $618k $590k $260k $1.18M* 31/07/2023 31/07/2024 31/07/2025 24/04/2026 31/07/2026 (proj) * Projected if all Motion 7 instalments raised on schedule

Balance sheet snapshot — 24 April 2026

ComponentAdmin FundCapital Works FundTotal
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
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Audit context

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.

04 · Levy Programme

$1.16M special levy · 4 instalments

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.

Per-UE rates (current FY 2025–26)

FundPer 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

Motion 7 instalment schedule

1 May 2026
$555,000
1 Aug 2026
$201,667
1 Nov 2026
$201,667
1 Feb 2027
$201,667

What is NOT yet funded — likely future special levies

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.

$
Cashflow drag

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.

PART 03
05 Defects
06 Acoustic
07 Fire safety
Building Condition
Three deep-dives into the physical state of all four buildings.
05 · Defects By Building

All four buildings affected

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.

Kona A & B
Levels Ground–8
Rooftop leak L8 Failed waterproofing Fire damper FD-44 Mould (Unit 1516) Window leaks Bee infestation 1701/1801
Valencia A & B
Levels Ground–7+
Failed balcony waterproofing Wet wall Unit 2107 Jack hammering L7 Compactor room fire collar Fire doors B
Hamlin A & B
Levels Ground–6
Fire damper Hamlin A Fire stair cracks Common area access
Verna A & B
Levels Ground–6
Water leak L3 (failed waterproofing) Lift lobby fire dampers Pump room damper

Expert reports forming the litigation evidence base

DateExpertSubject
09/05/2019RHM ConsultantsOriginal general defects
04/05/2020Bellmont Façade EngineeringFaçade
02/05/2024Forensic Engineering Australia (FEA)Hydraulic — preliminary
13/12/2024Acoustic Dynamics Pty LtdAcoustic — 20% units sample, $8,650
13/01/2025Koikas AcousticsAcoustic — supplementary
05/02/2025AE&D / AES (Daniel Keato)Fire & life safety — 101 units (41%)
28/02/2025AE&D — AED 9599 Review of Remedial WorksReview of Ceerose's repairs (Deed terminated)
14/08/2025Forensic Engineering Australia & Hydraulic ExpertHydraulic — supplementary
27/08/2025Forensic Engineering Australia (further invoice)Ongoing hydraulic
ongoingDiagnostechBeing finalised (per Chambers Russell, 14 Nov 2025)
!
Settlement deed terminated

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.

06 · Acoustic Deep-Dive

Acoustic defects — multi-source noise intrusion

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.

Acoustic noise sources → affected units
SOURCE
Cafe ventilation
SOURCE
Sprinklers / building services
SOURCE
Basement jet fans
SOURCE
Mechanical plant
→
EXPERT WITNESSES
Acoustic Dynamics
Project 5989 · Snr Eng JC
Koikas Acoustics
Report 13/01/2025
→
AFFECTED
Apt 1101 Kona A
AFFECTED
Unit 5001
AFFECTED
Valencia B Level 7
BUILDING-WIDE
Many units (CR SYD230148)

Acoustic experts engaged

ExpertEngagementCost
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
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Litigation linkage

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.

07 · Fire Safety Deep-Dive

Systemic fire safety defects

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.

Fire damper compliance — building-wide

66% FAILED
39 of 59 fire dampers non-compliant

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.

AFSS lodgement history

2022
AFSS lodged on time
2023
AFSS lodged · Council reminder issued
2024
AFSS Council Reminder · late lodgement implied
2024
AFS 2042 PIN Enquiry — Penalty Infringement Notice from council
2024
NSW Govt Revenue WITHDREW the AFSS fine
2025
AFSS T0796 lodged 30/07/2025 — current. Assessed by accredited practitioner F049448A.

Fire defects — the bigger picture (AED audit)

AE&D inspected 101 of 246 units (41%) in their February 2025 report. Findings:

Units with defects
78%
of 101 units inspected
PEX pipe penetrations
45%
defective
Electrical penetrations
44%
defective
Hebel walls
24%
joints/gaps/holes

AED further investigation programme — authorised at EGM 16/02/2026

Motion / OptionCoverageCost (ex GST)Status
Motion 3 / Option A185 units (100% common areas)$100,500SELECTED
Motion 3 / Option B124 units (75%)$75,500—
Motion 3 / Option C62 units (50%)$57,500—
Motion 4 / Option D35 units internally$21,500SELECTED
Total authorised$122,000 ex GST= $134,200 inc GST

Real fire incident — Unit 5208 · August 2025

⚠
Fire risk realised, not just theoretical

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.

Fire safety contractors

  • D A Fire Services Pty Ltd — primary contractor, monthly servicing $1,833.34
  • AE&D Pty Ltd — fire safety defects investigation (litigation expert)
  • Romteck Grid Pty Ltd — fire monitoring
  • My Sparkie Electrical and Fire Solutions — fire/electrical
  • Phoenix Fire Protection and Maintenance — alternative contractor reviewed
PART 04
08 Litigation
09 The builder Ceerose
10 Strata governance
Legal & Governance
The active legal matters, the builder behind them, and how the scheme is being run.
08 · Legal Architecture

Three live legal matters

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.

OWNERS CORP SP 90191 Arlington Grove CASE 1 · NSW SUPREME COURT SP 90191 v Ceerose & Galileo Proc. 2023/315882 · CR SYD230148 OC = Plaintiff · Building defects CASE 2 · NCAT Farrugia v SP 90191 Proc. 2025/00296898 · CR SYD251943 OC = Respondent · Lot 248 (Shop1) CASE 3 · THREATENED NCAT Britton (Lot 233 / 2616) Defective repairs claim Ceerose now actively rectifying sues defends facing

Case 1 — Supreme Court — procedural status

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.

OC's solicitors — Chambers Russell Lawyers

Paul Jurdeczka · Andrus Must (Senior Associate) · Nastasia Pechanats (Lawyer) · Nicole Ellul-Thorn · +61 2 8248 2800 · Level 15, 25 Martin Place, Sydney NSW 2000

!
Strategy & settlement context

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.

09 · The Builder

Ceerose Pty Ltd — pattern of defect losses

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.

Company profile

Founded
1998
28 years operating
Founder · MD
E. Doueihi
Petersham / Willoughby
Active 2026
Yes
Leichhardt 154-apt project filed
iCIRT Rating
None
Not in public register

Litigation history — 4 documented strata defect cases

2016 · NSWSC 1545
SP 78641 v Ceerose
Earlier project · Various defects
Outcome: Ceerose wins Owners corp mostly LOST on limitation period grounds. Ordered to pay majority of Ceerose's costs.
2014 build · 2024–25 judgments
SP 89074 — "The Eliza"
Elizabeth St CBD · 16-storey · 19 apartments
Outcome: $1.95M against Ceerose Inadequate falls to bathroom/ensuite floors; defective lift shaft. Court of Appeal 2025 (NSWCA 235) ruled against Ceerose — established that owners can refuse builder rectification once they've lost confidence. Now leading authority in NSW.
Nov 2025 · NCAT
SP 102171 — Aqualuna Milsons Point
8-storey · 63 apartments · 5 retail
Outcome: Joint & several liability Mechanical ventilation and air-conditioning defects. Decision 20 November 2025. Ceerose and Zone Q jointly liable.
2023–ongoing · NSWSC
SP 90191 — Arlington Grove (THIS SCHEME)
Proc. 2023/315882 · CR SYD230148
Outcome: Active Multi-category systemic defects. Prior Deed of Settlement TERMINATED. 78% of inspected units have fire stopping defects; 191 units (78%) affected by failed waterproofing.

Pattern reading

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).

!
Recovery risk

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.

i
No iCIRT rating publicly visible

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).

10 · Strata Governance

Management & by-laws

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.

Strata Manager

Strata Choice Pty Ltd
Mark Loveridge

Licence No. 224770
Phone 1300 322 213
info@stratachoice.com.au
GPO Box 5328, Sydney NSW 2001

Agency Agreement terms

  • Commenced 01/10/2025, term 36 months
  • Fee: $45,695 inc GST p.a. (Option 3 — no commissions)
  • Annual increase: CPI
  • OC signatories: Rebecca Pace-Fellows (Secretary) & Kyle Emslie (Chairperson)
  • Previous manager: Strata Republic / Wade McKenzie (per 2018 CWF Plan)

Building Manager

Sydney Building Mgmt & Projects (SBMP)
Apartment Projects Pty Ltd

ABN 14 167 332 069
Phone 02 9056 7100
info@sydneybmp.com.au
PO Box 461, Surry Hills NSW 2095

Engagement context

  • Annual spend (Admin Fund): $138,302 YTD ($181,195 budget)
  • By-Law 20 of consolidated by-laws governs the agreement
  • Building Manager-issued welcome letters (suffixed "(BM)") to new owners
  • Approving signatory on invoices: "PK" (initials)
  • Hundreds of "sp90191-sbmp-inv-*" invoices in the library

Consolidated By-Laws (25 January 2026)

31 standard by-laws plus 7 Special By-Laws:

SBL 1
Installation of blinds
SBL 2
Lot 164 Glass Balustrade Works
SBL 3
Works – Lot 78
SBL 4
CCTV Security Cameras
SBL 5
Prohibition of Smoking & Vaping
SBL 6
EV Charging Stations
SBL 7
Lithium-Ion Battery Devices
PART 05
11 Insurance & compliance
12 Property market & suburb context
Context
Insurance compliance and the suburb-level market frame around Lot 163.
11 · Insurance & Compliance

Strata insurance & AFSS status

Standard Residential Strata Insurance with comprehensive cover, but with a specific exclusion for building defects identified in the named expert reports.

Current policy

FieldDetail
Insurer / UW AgencyStrata Unit Underwriting Agency Pty Ltd · Underwritten by Insurance Australia Ltd (CGU)
BrokerBAC Insurance Brokers Pty Ltd · Account Manager: Priya Bax
Policy Number06S8012355
Period of Insurance26/09/2025 – 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

Recent insurance claims (per SGS Report 249578, 18 Apr 2026)

DateEventOutcome
12 Feb 2024Unit 1005 — sewage ingress in Basement B1 storage cageClaim ongoing
Early 2024Basement flood works — total cost $44,495$30,450 settled (net of GST + $10k excess)
1 Oct 2024Basement flood invoices pending — Brooks Irrigation, Fit TechUnder review
29 Nov 2024Platform-lift flooding damage$2,040 settled + $2,738 partial
15 Jun 2023Possible OBL matter — owner's mother fall injury (Felicio email)Status TBC

Insurance valuation

By A G Thomas Valuers (ABN 58 053 159 569) dated 6 August 2025:

Cost componentAmount
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
!
Building defects exclusion clause

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.

12 · Property Market & Suburb Context

The market frame around Lot 163

A buy decision rests on three layers: the suburb, the building, and the unit. Earlier sections covered the building. This section establishes the suburb fundamentals — the market snapshot, comparable sales, and the Sydney Metro tailwind shaping Dulwich Hill values through 2026 and beyond.

Dulwich Hill 1BR market — April 2026 snapshot

1BR Median Price
$720k
Dulwich Hill 2203, rolling 12mo
12mo Suburb Growth
+5.8%
Inner West sub-region
Average Days On Market
38
1BR units, last 6 months
Gross Rental Yield
4.2%
Suburb 1BR median
Vacancy Rate
1.4%
Inner West, tight
Metro Distance
~400m
to Dulwich Hill station

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.

Comparable sales — Arlington Grove (within building)

UnitTypeUESale price$/UEDefect disclosure
Unit 27072BR + car~38$1,060,000$27,895Pre-EGM 16/02/2026
Unit 32062BR + car~38$940,000$24,737Defect-affected unit
Unit 27062BR + car~38$860,000$22,632Older sale, lower-floor
Lot 1631BR + study24.22— 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).

The Sydney Metro tailwind

METRO STATION
Dulwich Hill
Sydney Metro West & South-West stage. Sandy Bay end of the corridor; new station ~400m walk from 6 Grove Street.
OPENING
H2 2026
Currently in commissioning. Direct CBD link via Bankstown corridor; reduces Dulwich Hill → Martin Place to ~22 min.

Why this matters for Lot 163

  • +4.5% typical uplift for properties within a 400m radius of new Sydney Metro stations (NSW Productivity Commission, comparable rail-station studies).
  • Asymmetric to defects risk — the suburb tailwind is real and externally driven; it does not offset the building risks but does cushion downside scenarios.
  • Liquidity boost — Metro proximity widens the pool of potential buyers (commuters who would otherwise pick Marrickville or Newtown), which partially counteracts the s184 disclosure drag during resale.
  • Yield compression — rental demand from commuters typically lifts gross yield by 30–50 bps in the first 24 months post-opening.
PART 06
13 Lot 163 spotlight
14 Buyer risk matrix
Decision Support
Unit-specific analysis and the buyer-side risk matrix.
13 · Unit-Specific Analysis

Lot 163 spotlight

The unit currently being considered for purchase ($750k-850k range). Sits in Building 1 (Kona A) on the top floor. UE corrected to 33 per the registered Strata Roll (sighted via Secured Group Services Report 249578, 18 April 2026); prior versions used a derived value of 24.22 which understated levy obligations by ~36%. Market and pricing analysis follow in §14.

Unit 1813 · Lot 163 · 33 UE

Owner: Stephanie Nieves De Francesco
Building 1 (Kona A) Level 8 · Top floor
Unit features
1 BR + study · 1 bath · 1 car

North-east aspect, leafy outlook, floor-to-ceiling glass to balcony, oak timber flooring, contemporary kitchen.

12-month forward levies
$8,822 total

$4,994 ordinary + $3,828 Motion 7 special (33 UE per registered Strata Roll). 1 May 2026 invoice ~$3,080.

Documented defect — directly above
Kona A Level 8 rooftop leak

Water leak / failed waterproofing at rooftop hatch — 03/04/2026 and 07/04/2026 emails — Lot 163 sits directly under it.

Documented defect — at lobby
Fire damper FD-44 NON-COMPLIANT

"Gaps above duct" — Waratah Air Audit Nov 2022. Unrectified for 3+ years. Fire compartmentation at Lot 163's lobby compromised.

Acoustic context
Same building as Apt 1101

Apt 1101 Kona A (Vincenza Zagarella) is severely affected by cafe ventilation noise — Kona A is a noise-affected building.

Smoke alarm enquiry
27 March 2026

Property manager (Jennine Edwards, Richard Matthews Real Estate) emailed Strata Choice asking when last AFSS was carried out — flagging active concern.

AED inspection coverage
Kona A Level 8 inspected

Both hallways inspected. Findings (78% of inspected units had defects) likely apply to Lot 163's hallway.

14 · Buyer Risk Matrix

Risk-weighted exposures

Risks weighted by severity and likelihood of materialising over a 5-year owner-occupier hold. High = significant probability of material financial impact.

High
Further special levy for rectification
Once FEA/AE&D scope reports complete, repair levies likely. Lot 163's share of a $5M scheme-wide repair levy: ~$12,110.
High
Resale liquidity (years 1–3)
S184 disclosure of active litigation, terminated settlement deed, and special levy programme will narrow the buyer pool.
High
Bank lending restrictions
Some major lenders restrict finance on units in buildings under active defects litigation. Requires building-specific pre-approval.
Medium
Litigation duration
The Eliza took 9+ years from defect identification to Court of Appeal. Expect 3–7 years for primary judgment plus appeals.
Medium
Recoverability from Ceerose
Three Ceerose-loss judgments and an asset-holding company structure raise concerns about recovering damages even if won.
Medium
Lift / plant registration expired
SGS Report 249578 §10 sighted only expired Lift / Plant Registration documents. WHS exposure under WHS Reg 2017 Pt 5.3; potential stop-use notice; insurance complications. Confirm current SafeWork NSW registration before settlement.
Medium
Insurance premium increases
Building defects exclusion already in place. Premium up 5% in 2025/26 vs 2024/25; further hikes plausible if claims pattern worsens.
Medium
Unit-specific water damage
Kona A Level 8 rooftop waterproofing failure is documented directly above Lot 163. Inspection should specifically check ceilings and ensuite for water-staining.
Medium
Fire compartmentation at lobby
Fire damper FD-44 at Kona A Level 8 lobby has been non-compliant since November 2022. Compartmentation protecting Lot 163 is compromised until rectified.
Low
Cladding / asbestos
No ACP cladding (insurance valuation confirmed). Building constructed 2017 — no asbestos register required.
Low
Strata management quality
Strata Choice (Mark Loveridge) — established managing agent on a 36-month SMA. Independent CBC Partners audit clean for FY24.
Low
Levy arrears / scheme financial discipline
Total scheme arrears just $7,627 across 6 lots. Strong collection discipline via Grace Lawyers. Net Owner Funds will recover after May 2026 special levy instalment.
PART 07
15 References & sources
References
Source documents, contacts, and provenance trail.
15 · References & Sources

Key contacts & primary documents

Reference directory

Strata Manager
Strata Choice Pty Ltd
Mark Loveridge (responsible licensee 224770)
1300 322 213
info@stratachoice.com.au
GPO Box 5328, Sydney NSW 2001
Building Manager
Sydney Building Management & Projects
Apartment Projects Pty Ltd (ABN 14 167 332 069)
02 9056 7100
info@sydneybmp.com.au
PO Box 461, Surry Hills NSW 2095
OC's Solicitors
Chambers Russell Lawyers
Paul Jurdeczka, Andrus Must, Nastasia Pechanats, Nicole Ellul-Thorn
+61 2 8248 2800
Level 15, 25 Martin Place, Sydney NSW 2000
Insurance Broker
BAC Insurance Brokers Pty Ltd
Account Manager: Priya Bax
Policy 06S8012355 · 26/09/2025–26/09/2026
Underwriter: Insurance Australia Ltd (CGU)
Builder (defendant)
Ceerose Pty Ltd
Founded 1998 · Edward Doueihi (MD)
3 lost defect judgments 2024–25
No iCIRT rating publicly visible
Auditor
CBC Partners
Domenic A. Cutrupi (Partner)
GPO Box 1442, Sydney NSW 2001
FY24 audit clean (15 August 2024)
Insurance Valuer
A G Thomas Valuers
ABN 58 053 159 569
PO Box 3418, Putney NSW 2112
(02) 9817 8366
CWF Plan Author
Sageview (NSW) Pty Ltd
Edward Malek
1300 094 648
Plan dated 4 June 2018 (overdue review)

Primary-source documents

TopicDocumentLibrary path
Q1, Q8, Q17Capital Works Fund Plan (Sageview, 4 June 2018)SMATA_1777005256569/.../CWF Plan/...20.pdf
Q1, Q2, Q3, Q12Insurance Valuation (A G Thomas, 6 Aug 2025)SMATA_1777004795757/.../valuation report/sp90191.pdf
Q4, Q5Audit Report (CBC Partners, 15 Aug 2024 — FY24)SMATA_1777005397935/.../audit report/Audit-Report-...pdf
Q6, Q15, Q17, Q18EGM Minutes 16/02/2026SMATA_1777004083049/.../minute book/General-Meeting-Minutes---16-02-26.pdf
Q9Strata Management Agency Agreement (signed 01/10/2025)SMATA_1777004545258/.../Agency Agreement/SP_90191_Agreement_-_signed.pdf
Q10SBMP Tax Invoice INV-12795 (6 March 2026)SMATA_1777006195822/.../invoice/sp90191-sbmp-inv-12795.pdf
Q15, Q18Defects Supreme Court email (Chambers Russell, 14/11/2025)SMATA_1777004545258/.../defects/Arlington_Grove___The_Owners_-_Strata_Plan_No_90191_v_Ceerose...
Q15, Q18AE&D Building Report (Ceerose Repairs Review, 18/03/2025)SMATA_1777005156897/.../building report/AE_D_Report_on_Ceerose_s_Repairs...
Q15AED 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
Q16AFSS T0796-AFSS-2025 (assessed 30/07/2025)SMATA_1777004545258/.../fire safety/T0796-AFSS-2025.pdf
Q16Fire 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, Q10Consolidated By-Laws (25/01/2026)SMATA_1777004083049/.../by laws/90191_By-Laws-report_25-01-2026.pdf
Builder analysisNSW Court of Appeal — Ceerose v SP 89074 [2025] NSWCA 235External — published online (Allens, TGLaw)
Builder analysisNCAT — SP 102171 v Ceerose & Zone Q (20/11/2025)External — Lawyerly news