This article is from the Australian Property Journal archive
JAMES Packer’s Crown Resorts and developer Lendlease secured a major win on Friday in the Supreme Court of New South Wales, as part of their ongoing fight to retain harbour views from their Barangaroo projects.
The state-run Barangaroo Development Authority was found to have breached its contracts with the companies, in not holding negotiations in good faith with them concerning development of the nearby Central Barangaroo site.
After drawn-out backroom discussions, Crown and Lendlease launched legal action in August against the BDA, fearing the Central Barangaroo site, to be developed by a consortium headed by Grocon, would build out prized views to the Sydney Harbour Bridge and the Opera House from Crown’s $2 billion casino and Lendlease’s residential tower.
Legal action became a much more likely prospect last year when the BDA came to an agreement with the Grocon consortium that had plans for towers higher than those initially drawn up.
Optimisation of development of Central Barangaroo was a central focus of the tussle, Justice Robert McDougall found in favour of the companies “because the authority had considered various bids to develop Central Barangaroo without first discussing or negotiating with Crown and Lendlease ways to retain the sight lines that the Crown and Lendlease buildings would otherwise enjoy to the Harbour Bridge and Opera House”.
He agreed that the BDA should have held negotiations with Crown and Lendlease upon receiving the Grocon consortium’s initial bids in 2014.
Justice McDougall concluded that the development agreements between the Authority, Crown and Lendlease did include provisions designed to protect sight lines and views, but also suggested there was “no doubt” that the matter would go to appeal.
The BDA said the authority was disappointed with the outcome and consider an appeal.
Australian Property Journal
