Supreme Court asks state, RMS to disclose documents to Desane over compulsory acquisition

The NSW state government and the Roads & Maritime Services have been ordered by the NSW Supreme Court to disclose documents justifying the compulsory acquisition of ASX-listed developer Desane Group Holdings' residential development site in Sydney’s Rozelle for the WestConnex project.

The third stage of the project involves a widening of the M4 motorway and connection to the M5 and will involve digging tunnels in Rozelle and surrounding inner west suburbs. The cost would be around $1.8 billion. 

The  documents relate to the "contemplated uses of the subject property in connection with Stage 3 of the WestConnex project and after completion of Stage 3 of the WestConnex project".

The government, through the Roads and Maritime Services, offered to pay Desane $18.4 million for its 5,274 sqm site at 68‐72 Lilyfield Road, which could yield a 200-apartment complex worth more than $100 million for use as a "staff carpark”, The Australian Financial Review reported.

At a hearing on Friday, Justice David Hammerschlag asked the state and the RMS, which is acting for the Sydney Motorway Corporation (SMC), to provide documents that have been created since January 1 to Desane. 

Justice Hammerschlag said if the state wanted to acquire Desane's property, Desane was "entitled to know the true reason why", according to a note issued to the ASX.

The court also refused to hear the state's application to remove itself from proceedings, according to the ASX announcement.

The developer had requested the NSW government to reconsider the acquisition, and also invited the NSW Premier Gladys Berejiklian to a meeting, which she declined.

The State and the SMC have also been asked to disclose to Desane documents showing the proposed structure of any sale of shares in SMC and SMC had to produce its company constitution, and the constitutions of its subsidiaries.

The next court date is on November 20.