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<p><span>Desane Properties' win in</span><span> the Supreme Court regarding the compulsory acquisition of its 5,274m property at Rozelle, has been challenged by the Roads and Maritime Services</span><span>.</span></p>
<p><span>The NSW Crown Solicitor’s Office informed Desane’s lawyers, Levitt Robinson Solicitors, that they intend to seek leave to appeal to the NSW Court of Appeal.</span></p>
<p>It will challenge <a href="https://www.urban.com.au/news/83123-desane-s-darryl-kerrigan-wins-case-against-low-value-westconnex-compulsory-acquisition-by-nsw-government" target="_blank">the Supreme Court’s finding made in early May</a> in respect of the formal validity of the Proposed Acquisition Notice issued to Desane, as well as his Honour’s finding that the PAN was given for an improper purpose.</p>
<p><span>The NSW Crown Solicitor’s Office advised that they would seek to expedite the appeal because “his Honour’s judgement causes significant uncertainty for a large number of pending and future acquisitions of land under the </span><span>Land Acquisition (Just Terms Compensation) Act 1991 </span><span>by the State of New South Wales and its agencies”.</span></p>
<p><span>Desane Chairman, Professor John Sheehan AM, said he was disappointed "that following the comprehensive judgement, </span><span>RMS have not heeded the advice of NSW Premier Gladys Berejiklian, when she publicly stated that the RMS needed to respect what the Court had decided and she expected them to move forward in a positive way</span><span>”.</span></p>
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Desane win in Rozelle compulsory acquisition court case faces appeal from RMS

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<p>The ASX-listed developer Desane Group is fighting the compulsory acquisition of its residential site in the Sydney inner west suburb of Rozelle.</p>
<p>The government, through the Roads and Maritime Services, offered to pay Desane $18.4 million for its 5274sq m site at at <a href="https://desane.com.au/for-lease/68-72-lilyfield-road-rozelle/" target="_blank">68‐72 Lilyfield Road</a>, for a WestConnex staff car park.</p>
<p><span>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."</span></p>
<p><span>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.</span></p>
<p>The site could yield a 200-apartment complex worth more than $100 million.</p>
<p>The raw site was listed on Desane's books as having a market value of $17.5 million.</p>
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<div class="cq-article-content-media section">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.</div>
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<div class="related-quotes section">"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.</div>
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<p>"There is a view that the government has performed poorly in the area of compulsory acquisitions."</p>
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<p>"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."</p>
<p>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.</p>
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<div class="cq-article-content-media section">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.</div>
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<div class="cq-article-content-media section">The RMS has faced <a href="https://www.urban.com.au/expert-insights/investing/74738-nsw-land-appeals-court-rules-in-favour-of-haberfield-site-owner-whose-site-was-acquired-by-rms" target="_blank">opposition to its valuations</a>.</div>
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Desane seek to stop WestConnex compulsory acquisition

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<p>The RMS is appealing the NSW Supreme Court “landmark judgement” handed down in favour of Desane on 1 May 2018.</p>
<p>The validity of the proposed compulsory acquisition by the Roads and Maritime Services (RMS) of the Desane Group Holdings Limited 5,274m2 flagship property, located at 68-72 Lilyfield Road, Rozelle, is set to be heard this week in the NSW Court of Appeal on the 28th and 29th of June 2018.</p>
<p>Desane will argue in the Court of Appeal that</p>
<p>"Firstly, the Proposed Acquisition Notice (“PAN”), issued by RMS in respect of Desane’s property at 68-72 Lilyfield Road, Rozelle on 26 May 2017 failed to comply with the requirements of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) by reason of a number of disconformities with the approved form of proposed acquisition notice, which invalidated the PAN."</p>
<p>"Secondly the PAN failed to state the specific purpose for which RMS may lawfully exercise its powers to acquire the Property compulsorily under the Roads Act 1993 (NSW), invalidating the PAN."</p>
<p>"Thirdly, that the RMS, in issuing the PAN did so for a purpose which was extraneous to its powers to acquire land conferred to it under S177 of the Roads Act because, at the date of the PAN, RMS’s substantial purpose for the proposed acquisition was to provide part of a new 10 hectare “Rozelle Park” on the property, which was not a purpose authorised by the Roads Act.</p>
<p>Last month <a href="https://www.urban.com.au/news/83123-desane-s-darryl-kerrigan-wins-case-against-low-value-westconnex-compulsory-acquisition-by-nsw-government" target="_blank">Desane won the court case</a>.</p>
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