Staff reporterSeptember 7, 2017
The ASX-listed developer Desane Group is fighting the compulsory acquisition of its residential site in the Sydney inner west suburb of Rozelle.
The government, through the Roads and Maritime Services, offered to pay Desane $18.4 million for its 5274sq m site at at 68‐72 Lilyfield Road, for a WestConnex staff car park.
When asked how he would describe the State Government’s dealings with Desane chairman, Professor Sheehan said: “In terms of RMS, who we’ve been dealing with, I can only say that they have been mean and tricky."
The Daily Telegraph reported Desane has started proceedings in the NSW Supreme Court seeking that the State of NSW, RMS and the Sydney Motorway Corporation be “restrained from acting upon or taking any step, in reliance upon a Proposed Acquisition Notice (PAN)” issued by RMS.
The site could yield a 200-apartment complex worth more than $100 million.
The raw site was listed on Desane's books as having a market value of $17.5 million.
The WestConnex M4-M5 Link "Environmental Impact Statement" advised the site would be acquired for "Light Vehicle Parking" for construction staff working on stage three of the project.
"We humbly assert that the total acquisition of our property for multiples of millions of dollars is an incredibly wasteful way to achieve this purpose, and comes at a significant opportunity cost to our company, its shareholders and the NSW taxpayer," Desane chairman Professor John Sheehan said in a letter to the NSW Premier Gladys Berejiklian.
"There is a view that the government has performed poorly in the area of compulsory acquisitions."
"Our property therefore presents your government with an opportunity to "get it right", curtail runaway project costs and end any potential delay associated with private properties in this corridor."
Professor Sheehan said he did not want to commence "costly litigation" against the NSW government and suggested alternatives to acquisition including a lease or licence over the site over a specific period.
Desane developed the site into a tech multimedia centre 20 years ago and in 2015, lodged a planning proposal to convert it into a mixed use residential property.
The RMS has faced opposition to its valuations.
