There has been another twist in the 120 Marine Parade saga, with developer Gary Dempsey mounting a lawsuit over the land sale that derailed his $22 million apartment plan.
Details of the shock land sale that derailed Perth-based developer Gary Dempsey's $22 million Marine Parade plan have been laid bare after he launched a multi-million court action against the site’s owners.
It took years of planning, three design iterations and a very public battle with the Town of Cottesloe council, but the development appeared to be on track after gaining approval from the state’s peak planning body in August.
By November, it was revealed the site had been sold to rival developer Barry Baltinas; with little to no explanation as to why.
But the full details of what allegedly went on behind the scenes have been outlined in a writ lodged in the Supreme Court this week, with Mr Dempsey claiming damages for a contract breach or a share of the proceeds from the land sale.
At the centre of the court action is a development and management agreement Mr Dempsey claims he entered into with 120 Marine Parade Pty Ltd, an entity spearheaded by Perth-based doctors Julie Lai Wai Ng, Justin Jamie Peng Yan Ng and Michael Chinh Nguyen.
Under the agreement, signed in April 2020, Mr Dempsey was to lead the development of an apartment-style complex across the 561 square metre site, which was then valued at $8 million.
Mr Dempsey claims he was required to finance the preliminary costs himself, but that those costs formed the basis upon which he would receive profits from the development; including a management fee and a success fee worth more than $5.1 million.
Up until November, the development was progressing well, with development approval obtained and third party funding for its construction all but sourced.
But the project was derailed without warning, Mr Dempsey claims in his writ, when the trio sold the site to a third party for $13 million.
That third party was developer and architect Barry Baltinas, who has now confirmed he intends to proceed with the development himself.
Mr Dempsey claims the move has left him more than $620,000 out of pocket, as well as depriving him of the opportunity to earn the $5.1 million in profits.
Those figures were derived from a pre-feasibility study, which estimated the sale price of the proposed lots would have been $49.2 million.
Mr Dempsey is now claiming damages for the alleged breach of agreement or a declaration that he is entitled to a share of the proceeds from the land sale.
He is also claiming interest and court costs.