Desane gives up Rozelle site for $78m after legal loss
Developer Desane Properties has been forced to sell a Rozelle development site to the Roads and Maritime Service for $78 million after losing a long-running legal battle against compulsory acquisition of the land by the NSW state government
The state government had originally sought to acquire the site in Sydney’s inner west to use as part of the WestConnex project.
Through the RMS, the state government had offered to pay Desane $18.4 million for the 5274sq m site at 68‐72 Lilyfield Road.
The site had prospects for a 200-apartment complex development worth more than $100 million and Desane had fought to hang on to the site.
In May, the Supreme Court fo NSW had found in Desane’s favour, ruling the government’s notice to acquire the block had no statutory effect, considered a landmark finding because it overturned compulsory acquisition in its entirety.
In that decision, Justice David Hammerschlag found the acquisition notice had failed to “state the public purpose for which the property is to be acquired”.
The state government appealed that decision and the Court of Appeal this week handed down its judgement in favour of the RMS, setting aside the Supreme Court orders from May.
On Friday, Desane chairman John Sheehan said the company’s preference had been to deliver the master‐planned mixed use development it had planned but its shareholders could be satisfied that the agreed sale represented a fair market value for the site.
“The prospect of further litigation arising from yesterday’s decision of the Court of Appeal is not in the best interests of shareholders,” he said.
