Australian developer sues for A$100m after rail project halts 218-apartment build
Australian developer H1Land is suing the Suburban Rail Loop Authority for A$100 million after a major rail project halted its apartment construction in Melbourne. The developer alleges the government failed to consult them and misled them regarding the impact of the tunnel on their property.
Why it matters
This case highlights the legal and financial risks developers face when large-scale government infrastructure projects intersect with private property rights.
An Australian property developer has sued the Suburban Rail Loop Authority (SRLA), seeking at least A$100 million in compensation after a railway project stopped work on its 218-apartment development in Melbourne. Construction has been on hold for two years, leaving more than 100 buyers waiting for their homes.The dispute involves the Southpoint apartment project on Nepean Highway in Cheltenham, opposite Westfield Southland shopping centre. According to Sydney Today, the problem began because the project's planned underground car park is close to the route of the proposed Suburban Rail Loop (SRL) tunnel.Developer H1Land says the Victorian government moved to take control of part of the land beneath its property in 2024, forcing it to stop construction. The company claims it was told it would receive fair compensation.However, H1Land alleges that the government was also planning to remove some of its rights over the underground land through a separate process.
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