SNS Pty Ltd v Roads and Maritime Services [2018] NSWLEC 7

SNS Pty Ltd v Roads and Maritime Services [2018] NSWLEC 7

The market value of the land is to be determined using the before and after method, based on the amount of GFA that hypothetical prudent parties would reasonably expect to achieve in each scenario, applying comparable sales rates from closely proximate Mascot sites. In the before scenario, certain approval is likely for FSR 3.2:1 (15,878m2 GFA) plus a small less certain potential (3.34:1; 695m2), at $3,200/m2 and $1,065/m2 respectively. In the after scenario, the prudent parties would expect certain approval for FSR 3.2:1 (10,508m2) and some less certain (3.34:1; 460m2), at $3,000/m2 and $1,500/m2 rates, but with deductions for necessary internal buttressing costs due to lack of access to...

Parties
Applicant: SNS Pty Ltd; Respondent: Roads and Maritime Services
Jurisdiction
Australia
Judgment Date
15 February 2018
Procedural Posture
Compensation Appeal (land Acquisition) / Final Principal Judgment and Orders
Outcome
Judgment for the applicant in part. Compensation awarded in the sum of $25,734,425 (final orders). Orders as to payment and costs made.
Legal Topics
Market Value Determination, Loss Attributable to Disturbance, Statutory Compensation Methodology, Development Potential, Valuation Approaches, Planning Controls in Acquisition, Partial Acquisition, Stamp Duty Claims, Consultant Fees, Prior and Subsequent Land Use
Compulsory Acquisition Planning Law Valuation Law Market Value Determination Loss Attributable to Disturbance Statutory Compensation Methodology Development Potential Valuation Approaches +5 more

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Parties

SNS Pty Ltd

Applicant

Roads and Maritime Services

Respondent

Procedural Posture

Compensation Appeal (land Acquisition) / Final Principal Judgment and Orders

Legal Issues

  1. 1 How to determine market value in 'before and after' method for mixed use land subject to partial compulsory acquisition
  2. 2 Extent and type of disturbance loss claims available under s 59(1)(f) of the Land Acquisition (Just Terms Compensation) Act 1991
  3. 3 What developable GFA is reasonably achievable in before and after scenarios under planning controls

Ratio Decidendi

The market value of the land is to be determined using the before and after method, based on the amount of GFA that hypothetical prudent parties would reasonably expect to achieve in each scenario, applying comparable sales rates from closely proximate Mascot sites. In the before scenario, certain approval is likely for FSR 3.2:1 (15,878m2 GFA) plus a small less certain potential (3.34:1; 695m2), at $3,200/m2 and $1,065/m2 respectively. In the after scenario, the prudent parties would expect certain approval for FSR 3.2:1 (10,508m2) and some less certain (3.34:1; 460m2), at $3,000/m2 and $1,500/m2 rates, but with deductions for necessary internal buttressing costs due to lack of access to...

Court Disposition

Judgment for the applicant in part. Compensation awarded in the sum of $25,734,425 (final orders). Orders as to payment and costs made.

Orders

  • Compensation under the Land Acquisition (Just Terms Compensation) Act 1991 determined in the sum of $25,734,425 comprising market value and disturbance.
  • Within 28 days of duly executed direction as to payment, RMS to pay compensation to SNS (plus any interest under s 49, less advance payments).