TMG Developments Pty Ltd v Roads and Maritime Services

Land and Environment Court New South Wales Medium Neutral Citation: TMG Developments Pty Ltd v Roads and Maritime Services [2014] NSWLEC 117 Hearing dates:28-30 April 2014; 1-2, 5-9, 12-13, 16, 19-20, 22-23 May 2014Decision date: 07 August 2014 Jurisdiction:Class 3Before: Biscoe J Decision: Determination of compensation in the sum of $15,324,830 for the compulsory acquisition of the applicant's land. The respondent is to pay the applicant's costs. Catchwords: COMPULSORY ACQUISITION - compensation - applicant was lessee from respondent government agency under 99 year headlease of Manly Wharf complex comprising a ferry terminal, eastern pier and retail centre - respondent compulsorily acquired applicant's headlease interest in ferry terminal and eastern pier leaving applicant with retail centre residue - ultimate valuation issue is value of applicant's acquired headlease interest as at the 2012 acquisition date - valuation methodology capitalisation of net income in before and after acquisition scenarios - numerous issues - main sub issue: annual market rental value of the terminal under a 50 year terminal sublease by respondent to applicant as at 2011 date for rent review, which did not proceed because of the proposal to carry out the public purpose of the acquisition - gross income, outgoings and capitalisation rate all in issue - whether (as applicant contends) terminal rent at 2011 rent review date should be assessed by the comparable transactions method referable to wharf access fees paid by two fast ferry operators at Manly, or (as respondent contends) on depreciated replacement cost method - if the former,...