Bondi Burleigh: Buyers in proposed Morris Property Group tower take action after sunset clause invoked

Disgruntled property investors are taking legal action against one of the Gold Coast’s most prominent developers after their contracts for units in a Burleigh tower were terminated.

Disgruntled property investors are taking legal action against one of the Gold Coast’s most prominent developers after their contracts for units in a Burleigh tower were terminated.

The seven buyers all bought off the plan in Morris Property Group’s (MPG) Bondi Burleigh tower in 2023 and 2024.

However MPG invoked a form of sunset clause in the contracts late last year citing delays that would mean the tower itself won’t be completed until 2030.

The clause allows the developer to terminate contracts if the project would not be completed by a certain point – June 15, 2029.

Artist impression of the proposed Bondi Burleigh tower put forward by Morris Property Group

MPG, in letters to the buyers, cited “severe shortages of construction materials” and “labour shortages”, plus ongoing construction of the light rail’s Stage 3.

But buyers question why they were not offered new contracts at the same price.

Among those taking legal action, led by Pine Lawyers, is Sydney accountant Neil Parker, 52, who, with wife Kathy, paid a $20,000 deposit on a $1m two-bedroom unit in the proposed Gold Coast Highway tower.

Mr Parker said he had planned to use it as an investment and holiday home.

“It’s frustrating but we are just trying to get on with it. You always do your research and (MPG) has done a lot of developments and there was an absence of negative publicity,” he said.

Neil Parker, who says he had his contract in the Bondi Burleigh tower terminated by Morris Property Group

“We entered into the contract to buy the unit off-the-plan in good faith. We expected the developer would have done so as well.

“While we knew there was a sunset clause, and there always is, we never expected it would be activated.”

Another buyer was fellow Sydney resident Ivan Jasenec who spent $30,000 in deposits on two units in 2023.

“I was looking for an investment that would help set up my four adult children, but now we’ve been left in the lurch,” she said.

“I was devastated when I received the letter informing us our contracts were being terminated and refunding our deposits.

Artist impression of Bondi Burleigh tower. Picture: Supplied

“The problem is prices have risen since I first struck the deal with the developer, meaning I’ve been priced out of the market.”

MPG boss James Morris defended the move saying the company had been unable to get approvals for construction traffic management plans while light rail works were underway.

“The Bondi Burleigh property (the Scheme) is located on the Gold Coast Highway and directly adjacent to the Gold Coast Light Rail and MPG had been negotiating with the relevant authorities for approval of a traffic management plan to allow construction of the Scheme without risk to program.

Barry Morris and James Morris, Gold Coast developers

“Approvals from Authorities are essential to provide certainty the scheme can be developed (but) as at the date of termination of the contracts, the relevant approvals from authorities had not been received. The delay in authority approvals, combined with other well-established market conditions such as material and labour shortages meant the construction program longer than originally anticipated.

“Sales contracts were terminated in accordance with the contractual terms while there was only a small number of buyers who had purchased lots in the Scheme,” he said.

Artist impression of the proposed Bondi Burleigh tower put forward by Morris Property Group

“MPG believes this was the right thing to do to enable certainty and transparency for the buyers (and) all buyers were transferred their full deposit, plus interest earned on the investment of cash deposits.”

Pines Lawyers principal Andrew Pine, for the buyers, said he and his clients wanted MPG to explain why it tore contracts.

“We’ve asked their legal team to produce documentation or communication between their client and the Gold Coast City Council, evidence substantiating claimed material and labour shortages for this actual development, and evidence regarding the delays resulting from insolvency and or collapse of subcontractors engaged in the development,” he said.

Originally published as Bondi Burleigh: Buyers in proposed Morris Property Group tower take action after sunset clause invoked