Grollo ‘knew of risk with Crown heights’

Developer knew from January 2017 that Barangaroo plans — and profitability — might be affected by Crown’s desire to protect harbour views.

The Crown building at Barangaroo in Sydney. Picture: Jeremy Piper

Melbourne developer Grocon was aware from at least January 2017 that its Barangaroo plans — and profitability — might be impacted by Crown’s desire to protect the harbour views of its casino and hotel project, documents lodged in the NSW ­Supreme Court claim.

In its 150-page response to Grocon chief Daniel Grollo’s $270m law suit, Infrastructure NSW alleges the Melbourne developer was informed of the risks associated with the harbourside development.

“Grocon was aware … the risk that Lendlease and/or Crown would use the sight lines clauses to seek to restrict the height of development at Central Barangaroo … (and) the risk that the sight lines clauses posed to the scale of the development … and the financial return that Grocon was capable of generating …” the INSW court filing states.

The INSW court filing claims that on February 12, 2019, Mr Grollo telephoned a government employee, Barangaroo consultant Ron Finlay, and said: “I am out of the project.”

Grocon had entered into the Barangaroo development agreement in November 2017, the INSW court filing states.

INSW’s response to the Grocon law suit, lodged with the NSW Supreme Court on Christmas Eve, suggests that a trove of emails, texts and letters between INSW executives and Mr Grollo and his Grocon chiefs will be central to its defence.

INSW alleges that Grocon executive Chris Carolan independently contacted Crown executive Todd Nisbet from at least January 2016 to April 21 that year about Crown’s position on Barangaroo harbour views.

“Grocon acknowledged in a meeting with the (Barangaroo Development Authority) on 15 January, 2016, that it understood stakeholders could come from a ‘starting point’ that ‘no loss of views (would) be acceptable’,” the court filing states.

While the emails and texts are not detailed, they appear to form a key part of its case, and suggest INSW believes it has a credible defence to the $270m claim.

In its court filing, revealed in The Weekend Australian, ­Grocon claims INSW and its predecessor, the Barangaroo Develop­ment Authority, withheld information for four years about how the Crown development would slash the scale of its project.

INSW has also filed a cross claim against three Grocon companies, lodged with the court on March 2, in which it claims it should be indemnified by Grocon.

More than 80 Grocon-related companies have been placed in administration following the collapse of Mr Grollo’s empire, and the once high-flyer also faces ­losing his $16m Eureka Tower penthouse.