James Kennedy’s $4.5m house purchase blowing in the wind
Businessman James Kennedy is embroiled in a legal tussle with an infamous property developer over the sale of a posh East Melbourne property and court documents reveal the sale has been dragging on for two years.
Fiona Byrne
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Richard Mingfeng Gu, the property developer who infamously defaulted on the $19.8 million purchase of Cate Blanchett’s Sydney mansion in 2015, is at the centre of a legal tussle with businessman James Kennedy over a posh East Melbourne property.
Kennedy is taking Supreme Court action against Gu’s AXF Group and its liquidator to finalise the purchase of the Clarendon St home.
AXF Group was placed into liquidation in February 2020.
Court documents claim Kennedy has been trying to complete the purchase for more than two years.
The statement of claim says Kennedy and Gu entered into a contract of sale in January 2018 where AXF Group sold the property to Kennedy for $4.5 million, with more than $1 million on deposit.
It is claimed that between January 2018 and early 2020 Kennedy made repeated attempts to complete the purchase from Gu and AXF Group to no avail. Meanwhile between June 2018 and October 2018, Kennedy made improvements to the home of approximately $400,000.
“KPPL (Kennedy’s company) is ready and willing to perform its obligations to complete the sale,” the statement of claim reads.
“Notwithstanding continued demand, AXF continues to refuse to complete the sale under the contract.” Kennedy is taking action requesting the immediate completion of sale of the property and is seeking damages. Kennedy declined to comment. AXF Group liquidator Malcolm Howell has been contacted.