Springfield City Group has been successful in obtaining an Interlocutory injunction against Aveo Group in the Queensland Supreme Court.
The interlocutory injunction is to allow the developer of Australia’s largest master planned city Springfield, 33km from the Brisbane CBD, to take legal action against Aveo over an alleged failure to meet development targets for its seniors' project, which both parties claim could cost them upwards of $1 million.
Aveo announced plans for the $1 billion development in 2016, claiming the project would form “Australia‘s largest intergenerational retirement village”. It opened the first stage of the 15-plus year Springfield development in June 2017.
The main dispute between the parties surrounds two updated business plans that Aveo provided in March and November last year. Springfield City Group did not approve either of the business plans.
Springfield City Group is claiming Aveo’s updated plans made it unlikely they could successfully develop at least 2500 seniors’ products, as they had originally agreed upon.
Aveo claimed it was currently incurring about $1 million in annual holding costs for each of the 96 completed seniors’ products they had yet to sell. In addition, Aveo claimed it was incurring a further $2.8 million in annual interest costs for debt funding associated with the construction of the seniors’ products.
The matter was adjourned for review no earlier than July 31.
Aveo’s acting head of development George Petersen said proceedings would have no impact on residents or operations of the Springfield retirement community (pictured).
Sector Moves & People
Janet Anderson out, new Aged Care Quality and Safety Commissioner in
The inaugural Commissioner of the Aged Care Quality and Safety Commission, Janet Anderson PSM, will depart the role next month after six years in favour of a new face.
