Sandy Bay mansion and former nursing home for sale after owners lose Federal Court battle
A grand, 120-year-old mansion in Sandy Bay formerly run as a nursing home – is for sale after its owners lost a Federal Court stoush. SEE INSIDE >>
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- Derwent Court nursing home loses decades-old legal battle
- Sandy Bay mansion plans poised to disturb historic roots
THE owners of a Sandy Bay mansion – who were forced to stop running it as a nursing home some 24 years ago – have finally decided to sell.
The grand, heritage-listed mansion at 20 Fitzroy Place was built circa 1900 and is expected to fetch a price into the millions.
Previously run as the 51-bed Derwent Court nursing home until it lost federal court approval and funding in 1997, the property has returned to its original purpose as a residence – with 18 bedrooms, four bathrooms, and parking space for 10 cars.
The mansion was originally home to colonial merchant Clyde Hamilton before the main building was constructed in 1910 for H.J. Gray, the general manager of Cascade Brewery.
The sale comes after the owners last year lost a protracted federal court challenge against their lawyers for professional negligence, following the property’s deregistration as a nursing home.
The drawn-out stoush began after the federal court revoked Derwent Court’s nursing home approval – and therefore its recurrent $1 million in annual funding – after reviews of the site found it failed to meet standards for fire safety, dementia, continence care and pain management.
Derwent Court’s elderly residents were moved to Rosary Gardens nursing home at New Town.
However in 1998, the full court of the Federal Court set aside the ministerial decision to deregister Derwent Court.
Subsequently, the operator Jadwan, a trustee of the Alexander family, tried to sue its lawyers by arguing they failed to seek an injunction or challenge the government sanctions.
A decision was handed down in April 2020 dismissing Jadwan’s appeal.
The real estate agent now selling the Federation Queen Anne mansion said the property was turned into a nursing home in the 1960s before it was extensively remodelled and extended in 1979.
In 1984, it was renamed Derwent Court by the present owners, and is for sale for the first time in 36 years.
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