Mantello Holdings claim for compensation from Queenscliffe council updated in Supreme Court

A developer that purchased a block of land off a local council claims to have unearthed a report proving the borough was aware of asbestos prior to a multimillion dollar sale.

Workers in protective equipment move contaminated soil with asbestos signs around the building site in Murray Road, Queenscliff in March. Picture: Brad Fleet

A developer that purchased a block of land off the Borough of Queenscliffe only to discover it riddled with asbestos claims to have unearthed a report proving the council was aware of the problem prior to the multimillion dollar sale.

Mantello Holdings, which purchased the Murray Rd land from the council for $3.2m last year and began constructing a residential development in January, has updated its writ for compensation against them in the Supreme Court.

The company is pursuing millions of dollars from the borough after it was forced to halt construction to remove a dangerous amount of asbestos it alleges came at a cost of well over $1m.

Mantello Holdings bought the parcel of land on Murray Rd in 2023 for $3.2m. Picture: Brad Fleet

According to recently lodged court documents, a report was commissioned in 2004 that told council there was asbestos in the Queenscliff site which was used as a tip in the 1990s.

The company first filed its claim in October, alleging it was under the impression the land had been improved as a result of clean fill deposited on the site.

Mantello Holdings alleges the deposit of waste resulted in it being unable to use the land.

The writ has since been updated to include a report the developer claims was commissioned by the Borough of Queenscliffe in 2004 that told council there was asbestos in the land.

The writ also claims that the Environment Protection Authority (EPA) sent a letter to the Queenscliffe council in 2008 noting the presence of asbestos and encouraged the council to obtain an environmental audit.

However no such audit was obtained, according to the document.

It’s understood the information was obtained by the developer through Freedom of Information.

The waterfront site Picture: realestate.com.au

“We were led to believe during the sale process that the site had been completely remediated, obviously that’s turned out not to be the case,” Adam Cole, director of AWC property and a partner in the project, told this masthead.

Mr Cole said the entire site has now been properly remediated “at the developer’s expense” and had undergone a preliminary risk screening assessment that had been accepted by the EPA “as now being a clean site suitable for residential development”.

This created significant delays, however the project is now finished with titles expected in January 2025.

The Geelong Advertiser put the allegations to the Borough of Queenscliffe.

A borough spokeswoman said as the claim was before the court, it was not appropriate for it to comment further.

The council sold the 9509 sqm parcel of land the Melbourne-based developer in March last year for $3.5m.

The subdivision will see 13 individual lots sold off being marketed as “The Cove”, with the Murray Rd facing blocks starting with a $1.2m asking price.

Many Queenscliff residents living next to the development were outraged in March over what they claimed was a “silent asbestos removal”.

Originally published as Mantello Holdings claim for compensation from Queenscliffe council updated in Supreme Court