Carlewie Pty Ltd v Roads and Maritime Services [2017] NSWLEC 78

Carlewie Pty Ltd v Roads and Maritime Services [2017] NSWLEC 78

The acquired land was to be valued primarily by capitalising market rent from continued industrial use, including hardstand/yard areas, because the asserted separate development value of the north-eastern and south-western portions was constrained by heritage significance, planning controls, the local road proposal, the need for development consent, the fire safety order, contamination risks and the existing lease circumstances. The Court accepted a 7% capitalisation rate, adopted rental values for hardstand and tenancies, deducted appropriate capital adjustments for DADI profit rental, essential heritage works, fire order compliance, contamination and demolition, rejected the land tax...

Jurisdiction
Australia
Judgment Date
30 June 2017
Procedural Posture
Class 3 Compulsory Acquisition Compensation Objection Under the Land Acquisition (just Terms Compensation) Act 1991 / Principal Judgment Determining Compensation
Outcome
Compensation determined for the Applicant in the amount of $23,277,688.96; costs reserved; exhibits may be returned.
Legal Topics
['just Terms Compensation' 'market Value' 'disturbance' 'industrial Land Valuation' 'heritage Listed Warehouses' 'fire Safety Order Compliance' 'contamination and Underground Storage Tanks' 'land Tax Adjustment' 'development Potential']
['compulsory Acquisition' 'land Valuation' 'planning and Environment' 'heritage Conservation'] ['just Terms Compensation' 'market Value' 'disturbance' 'industrial Land Valuation' 'heritage Listed Warehouses' 'fire Safety Order Compliance' 'contamination and Underground Storage Tanks' 'land Tax Adjustment' 'development Potential']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Class 3 Compulsory Acquisition Compensation Objection Under the Land Acquisition (just Terms Compensation) Act 1991 / Principal Judgment Determining Compensation

Legal Issues

  1. 1 ['What market value should be attributed to the acquired industrial land as at the date of acquisition.' 'Whether potential developable areas in the north-eastern and south-western portions should be valued as development land or as hardstand/yard areas.' 'What deductions or adjustments should be made for heritage conservation works, fire safety order compliance, contamination and demolition costs.' 'Whether land tax paid by the Applicant should be included in market value.' 'Whether replacement property costs, including stamp duty, conveyancing costs and financial costs, were compensable as disturbance.' 'How the Court should resolve competing expert opinion evidence in the valuation exercise.']

Ratio Decidendi

The acquired land was to be valued primarily by capitalising market rent from continued industrial use, including hardstand/yard areas, because the asserted separate development value of the north-eastern and south-western portions was constrained by heritage significance, planning controls, the local road proposal, the need for development consent, the fire safety order, contamination risks and the existing lease circumstances. The Court accepted a 7% capitalisation rate, adopted rental values for hardstand and tenancies, deducted appropriate capital adjustments for DADI profit rental, essential heritage works, fire order compliance, contamination and demolition, rejected the land tax...

Court Disposition

Compensation determined for the Applicant in the amount of $23,277,688.96; costs reserved; exhibits may be returned.

Orders

  • ["Compensation for the compulsory acquisition by the Respondent of the Applicant's property known as 53-55 Campbell Street and 33 Burrows Road, St Peters, being lot 101 in DP 845651 and lot 102 DP 871150, on 3 July 2015, is determined in the amount of $23,277,688.96, pursuant to the Land Acquisition (Just Terms...