SP Setia Bhd. and Telstra Corp. Ltd. are facing each other in court as the two try to determine who is responsible for the demolition of existing buildings in the 4,164-square-meter Melbourne site that the Malaysian developer bought from the telephone company for A$101 million, The Australian Financial Review reported.
In a writ filed with the Supreme Court of Victoria, SP Setia alleged that demolition of "all buildings and improvements on lot 2 except the car park ramp and the new cable chamber" are included in the vendor works as stipulated in the contract, and part of the conditions before settlement of the sale. However, Telstra responded and denied that it is responsible for the demolition of the structures, as stated in the writ.
Included with the site is a basement carpark and a two-story staff amenities building, the publication noted, and the Australian telecommunications company still owns the 17-story communications tower standing at the plot adjacent to the property.
The site at 308 Exhibition St., purchased by SP Setia from Telstra in 2016, is intended for the developer's A$478 million hotel and apartment complex, which will house 318 apartments and 500 hotel rooms across twin towers. According to the Dec. 11 report, SP Setia is teaming up with Shangri-La Hotels & Resorts for the development of the project, which was originally proposed as a A$640 million development.
