Marine Parade progresses amid cost hike, lawsuit

Perth developer Barry Baltinas is pushing ahead with plans to complete Gary Dempsey’s development on Cottesloe's Marine Parade despite a $3.5 million cost hike, as the court battle over the sudden land sale continues.

Gary Dempsey Developments’ approved nine-storey apartment development was taken over by Mr Baltinas in November, after purchasing the 561 square metre site at 120 Marine Parade for $13 million.

Now, Mr Baltinas has submitted his own amendments, including modifications to the basement, ground and first floor plans previously approved, as well as the reconfiguration of vehicle access points.

But the other significant change was a $3.5 million increase in the value of the project, which has surged from $22.8 million to $26.3 million amid rising costs in the construction market.

Mr Baltinas said the amendments were in line with existing conditions for the site and made possible courtesy of his $27 million apartment development at the neighbouring 122 Marine Parade site, which is also being assessed by the State Development Assessment Unit.

“It was a condition of approval that vehicle access from Marine Parade be removed, which gives the benefit of reducing traffic and adding to the enhanced activation of the popular pedestrian strip,” he said.

“As we are now developing both sites, we’re able to create rear access from Napier Street to meet that requirement.”

The proposed amendments are not expected to alter the current building height or timeline of the project, with construction still anticipated to begin in the third quarter of this year.

The release of the proposed amendments for public consultation comes as the lawsuit between Perth-based developer Gary Dempsey and the site’s former owners continues.

According to a writ lodged in the Supreme Court, the lawsuit centres around the sale of the beachfront site to Mr Baltinas, a sale Mr Dempsey claims occurred in breach of a 2020 development and management agreement he held with the trio behind former landowner 120 Marine Parade Pty Ltd.

Under the contract, Mr Demspey claims he was expected to lead the development of an apartment-style complex and finance the preliminary costs himself, on the basis that those costs would translate into profits in excess of $5.1 million.

In the writ, Mr Dempsey claims the sale of the site has left him more than $620,000 out of pocket and deprived him of $5.1 million in profits, and he is now chasing damages or a share of the proceeds from the land sale.

The matter is due to return to the Supreme Court for a directions hearing next week.