Developer sues Victorian rail authority for over A$100 million after tunnel stalls apartment project
H1Land has taken the Suburban Rail Loop Authority to the Supreme Court, seeking at least A$100 million after the SRL tunnel forced a halt to its 218-unit Southpoint development in Cheltenham, leaving more than 100 buyers in limbo.
H1Land, the developer of the Southpoint 218-apartment project on Nepean Highway in Cheltenham, has sued the Suburban Rail Loop Authority in the Supreme Court, demanding at least A$100 million in compensation. The claim arises after the Victorian government moved in 2024 to acquire a portion of the land beneath the development for the Suburban Rail Loop tunnel, forcing the builder to suspend work that had been ready to start.
H1Land alleges it was initially assured of fair compensation, but a later ministerial recommendation sought to strip the same underground rights, reducing the payout. An early-September 2024 agreement for a A$2.5 million advance was undermined, and talks to redesign the apartments failed. The developer seeks reimbursement for construction costs, delay losses, legal fees and foregone profit, with the total claim exceeding A$100 million.
More than 100 families and investors who booked apartments in 2021 are still waiting and cannot retrieve their deposits. The case also raises broader questions about government liability to private owners when large infrastructure projects interfere with pre-approved developments.
Why it matters
It could set precedent on how governments must compensate property owners when major infrastructure projects disrupt approved private developments.
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