The New South Wales Court of Appeal has upheld a decision in relation to conditional arrangements entered into by General Property Trust and Westfield over the sale of the Sunshine Plaza in Maroochydore, Queensland.
Last year, GPT had entered into conditional arrangements with Westfield to sell a 25% stake in the $329 million Sunshine Plaza. The arrangements resulted in Lend Lease taking GPT to Court with Lend Lease claiming that the arrangements triggered pre-emptive right under the Joint Ownership Agreement between GPT and Lend Lease’s Australian Prime Property Fund Retail.
Yesterday, the Court of Appeal unanimously upheld the original decision handed down by the NSW Supreme Court in 2005, which found the conditional arrangements between GPT and Westfield in relation to the sale of the Sunshine Plaza, did not any pre-emptive right under the Joint Ownership Agreement.
GPT said the decision confirm the group’s view that there is no obligation for GPT to sell its interests in the property to APPF.
In addition, GPT said the decision also means GPT is no obliged to a 25% stake in Sunshine Plaza to Westfield unless certain preconditions have been met and those conditions have not yet been met.
Westfield’s option to buy a stake in the Sunshine Plaza lapsed at the end of 2005.
The centre is currently jointly owned by 50% APPF and 50% GPT and is managed by Lend Lease. The property comprises 72,600 sqm of space and 3,500 car spaces.
The Court also ordered that Lend Lease pay GPT’s costs in relation to both the original hearing held in September 2005 and the appeal process.
By Kathryn O’Meara
