Legal row erupts over $26 million Sydney MAFS mansion

It’s the harbourside home featured in some of Australia’s most iconic reality shows. Now the Spanish pink mansion is causing a stir in Sydney’s Eastern Suburbs.

A legal row between multiple millionaires has erupted over the garage of a $28 million home in Sydney’s eastern suburbs.

David Waterhouse, an estranged member of the famous Australian horse racing dynasty, had plans to develop his garage into a “self-contained dwelling” but had his plans shot down last week in the NSW Land and Environment after major pushback from his neighbours.

The house in Rose Bay. Picture: Realestate.com.au

The garage sits right next to Mincong Huang’s home. Picture: News Corp Australia

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The harbourside pink Spanish-style mansion, known as Villa Biscaya, sits on Tivoli Avenue in Rose Bay and has been featured on Married at First Sight, The Bachelor and The Voice.

In 2007, a development application made by the former owners of Villa Biscaya was granted by Woollahra Council for “alterations and additions” to be made to the garage. The works did not go ahead.

Mr Waterhouse is the brother-in-law of Gai Waterhouse. Picture: News Corp Australia

He is estranged from his bookmaker brother Bill. Picture: News Corp Australia

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However, in 2023, Mr Waterhouse decided he wanted the alterations to go ahead, submitting a modification to the originally approved application to the council, which was approved.

Next-door neighbour Mr Mincong Huang took Mr Waterhouse to court as a result, arguing the new works were substantially different to those approved in 2007.

The court heard how in December 2023, Mr Huang’s lawyer Graham McKee wrote to council, noting that the amended plans increased the “apparent visual bulk and locate[d] more of the development hard of the boundary of our client’s property”.

Mr Waterhouse bought the home in 2020 for $10.5 million. Picture: Realestate.com.au

He also noted that “the original consent was qualitatively and quantitatively different to the original development consent”.

Mr Huang submitted to the court that the new application included “the presence of a kitchen and bathroom” which was “completely different” to the originally approved proposal, labelling it “modification creep”.

He sold the property for approx. $28 million in 2023 after restorative works. Picture: Realestate.com

Justice Sarah Pritchard ruled that the development consent in 2007 could not be relied upon by Mr Waterhouse and declared it had formally lapsed in June 2012.

Mr Waterhouse has sold Villa Biscaya to investment banker Michael Rothner, with the settlement to be concluded at the end of July. Mr Rothner moved into the property in January.

However, the two men have been embroiled in their legal tussle with Mr Waterhouse accusing Mr Rothner’s wife of cutting down trees on Mr Huang’s neighbouring property.

The Rothners have denied cutting down the trees.

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