Chinese magnate and Port Adelaide Power sponsor Sally Zou sued for backing out of mansion purchase

THE sale of a historic mansion on one of Adelaide’s most prestigious streets is at the centre of a Supreme Court battle involving a major Port Adelaide Power sponsor.

The Medindie mansion which is at the centre of a Supreme Court stoush between real estate agent Sally Cameron and Chinese businesswoman Sally Zou.

A HISTORIC mansion on a prestigious Adelaide street is at the centre of a Supreme Court battle involving Chinese mining magnate Sally Zou, who is accused of backing out of a deal to buy the multimillion-dollar property.

Toop & Toop real estate agent Sally Cameron is suing Ms Zou, claiming the AusGold Mining Group director failed to settle on a contract to buy Ms Cameron’s sprawling property at 8 Robe Tce, Medindie for $5.58 million in February.

The 4007 sqm renovated property — which includes eight bedrooms, a main residence of 11 rooms, a renovated coach house, tennis court and swimming pool — was readvertised and sold two months later for $5.2 million.

But in her defence Ms Zou has denied any wrongdoing and accused Ms Cameron, who acted as the property’s sales agent, of deceptive conduct.

The pool and renovated grounds of the Medindie mansion.

Ms Cameron’s lawyer said Ms Zou paid two deposits last December totalling $250,000 but “defaulted” in her obligations to pay the balance of the purchase price for the property which was built circa 1900 for then Mayor of Adelaide, Arthur Wellington Ware.

A default notice was sent to Ms Zou on February 14 giving the Port Adelaide Football Club sponsor and SA Liberal’s biggest donor a week to pay the balance but she “failed to comply” with the notice and the contract was terminated on March 23, the claim filed by Nadia Shivarev, of Corsers Lawyers, states.

Chinese mining magnate Sally Zou.

Ms Cameron, who paid $3.2 million for the house in 2009, is claiming she has suffered loss and damages and is seeking damages of at least $227,000, which includes $130,000 being the difference between Ms Zou’s contracted price and the resale price, less the deposit. She also wants $74,294 in interest, $22,020 in marketing costs, $1100 to cover the issuing of the default notice and daily interest payments of $15.81 calculated from April 22 until the day of any court judgment.

But lawyer Michael Durrant, of HWL Ebsworth, stated in Ms Zou’s defence that his client was “induced to enter into the contract” on discussions with Ms Cameron that she would be able to demolish the house.

“During the course of negotiations for the sale of the property, and prior to the defendant signing the contract, the plaintiff said words to the effect to the defendant that it would be possible to demolish the residence on the property and redevelop the site if she purchased the property,” he said in documents tendered to court.

But he said the representation was “false” because the property was listed on the South Australian Heritage Register as a contributory item.

The entrance into the main residence of the Medindie mansion, which was built for former Adelaide Mayor Arthur Wellington Ware in circa 1900.

Under the Walkerville Development Plan, a contributory item “should not be” demolished “in total or in part” unless the “the structural condition of the place represents an unacceptable risk to public or private safety.”

Mr Durrant said Ms Zou was “entitled to avoid the contract” based on the alleged representations made by Ms Cameron, and that his client is entitled to a court order declaring the contract void.

He said the representations constituted a “misrepresentation” and conduct that was “misleading or deceptive and/or likely to mislead and deceive” in contravention of the Competition and Consumer Act. The matter has been listed for a directions hearing on September 28.