Operator News
Australia – Delays hit Packer’s Barangaroo
By Lewis - 14 November 2014
A payment dispute between Lend Lease and the NSW government has delayed James Packer’s $1.5bn Crown Sydney hotel-casino project in Barangaroo. The issues centres around a Court of Appeal decision won by Property giant Land Lease that could cost the New South Wales government millions on the site’s public infrastructure.
The NSW government is assessing whether it will have enough resources to pay for all the public infrastructure at the 22-hectare stretch of land as a result of the ruling. Both parties are at loggerheads over the amount of money, or share of the profits, Lend Lease will pay the government when the project is complete – and are now stuck in settlement talks about how much – or little – Lend Lease should pay. The method for valuing buildings at the site is at the hands of valuers who will decide the ultimate amount. The 70 storey, six star project was launched in 2012, spinning off into a design competition that was won by London-based practice Wilkinson Eyre Architects. It was approved by the state government in November 2013 despite not being a part of the original plan for Barangaroo South. Lend Lease cannot proceed with a submission of the concept plan with the Department of Planning and Infrastructure until the commercial issues are resolved. This means Crown cannot submit its own development application.
