Grocon fights to keep Barangaroo plans secret
Private developer Grocon is trying to keep secret documents relating to its $5 billion Barangaroo Central project in Sydney under wraps as it seeks to fend off a legal move by James Packer’s Crown Resorts to protect views from Crown’s new casino hotel on Sydney Harbour.
The case between Crown, which is working with listed developer Lendlease, and the NSW government’s Barangaroo Development Authority returned to the NSW Supreme Court yesterday, sparking the intervention of Melbourne-based Grocon.
The developer, owned by construction scion Daniel Grollo, argued that details of its plans for the new precinct should be kept to lawyers involved in the case. But Crown and Lendlease say their in-house lawyers should be able to pour over the documents as legal teams prepare for a courtroom showdown next month.
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The case, which turns on the interpretation of a contract between the developers, Crown and Lendlease, and the BDA that it would consult with them about projects that impinge on their views from the Harbour Bridge to the Sydney Opera House, has the potential to affect billions of dollars worth of development.
Crown is well-advanced on its $2.2 billion casino tower that will also include a hotel, whose views could be impeded, and apartments, which are not affected. Lendlease has another three luxury residential towers planned and also wants to ensure that views from existing buildings are not blocked.
Crown is most concerned that the Grocon project will block views from its long-planned tower, which Mr Packer has said will be a major drawcard for the city.
Meanwhile, Grocon is pushing ahead with plans for the enlarged Barangaroo Central precinct where it has proposed a $1.4 billion office tower, which is to be backed by Canada’s Oxford Property Group, as well as apartments, to be undertaken by Chinese-backed developer Aqualand, and a shopping centre by local Westfield owner Scentre.
The court heard that Grocon may lead evidence about the confidential nature of the documents, including its winning tender, with the dispute over access to documents stood over to be determined by judge Robert McDougall next week.
The BDA has previously argued that Lendlease, which lost the tender to the Grocon consortium, was seeking access to bid documents that went beyond the scope of the case.
Crown and Lendlease last month went to court to seek an injunction against the BDA to prevent it approving the rival development.
The pair have argued the BDA had failed to negotiate in good faith about the sightlines, with the authority refusing to disclose whether plans by the Grocon consortium had even been received.
After initially being pitched as a cultural precinct, Central Barangaroo has almost tripled into a $5bn precinct, partly to offset the cost of a new metro train station.
The case is due back on in court for directions next Friday and is expected to run for two days at the end of October.
This article originally appeared on www.theaustralian.com.au/property.
