Crown has a view to sue

Legal action to protect vista covered in contract

JAMES Packer-backed Crown Resorts has launched legal action against the NSW Government authority overseeing the Barangaroo development in a bid to stop views from its new $2 billion casino resort being obscured by other buildings.

The NSW Supreme Court action was revealed in an announcement to the Australian Securities Exchange yesterday on the same day the casinos operator posted a full-year profit of $558.9 million, down 70 per cent on a 2016-17 result that was inflated by the sale of its Macau business.

The court proceedings seek injunctive relief and declarations against the Barangaroo Delivery Authority to “require the BDA to comply with a number of contractual obligations”, Crown said in an ASX statement.

These include “consulting with Crown about any application for the proposed development of Central Barangaroo (pictured) that differs from the concept plan … and negotiating in good faith and agreeing with Crown and Lendlease any required changes to that application to ensure the sight lines from the Harbour Bridge to the Opera House are retained for the Crown Sydney Hotel Resort”.

The dispute between Crown and the BDA stems from a decision by then NSW premier Mike Baird to add a Metro rail station at Central Barangaroo. In a bid to recoup the cost of doing that, the BDA increased the size of what could be built above-ground at the site from 58,000 sqm to 150,000 sqm.

That increase threatens to block views from Crown to the Harbour Bridge and Opera House, which would likely reduce the room rates at the resort substantially.

In discussing the results yesterday, including a rise in revenue for the 12 months to June 30 of 4.5 per cent to $3.49 billion, Crown executive chairman John Alexander said of particular note was a 54.5 per cent increase to $51.5 billion in turnover in the firm’s VIP high-roller gambling business.

Mr Alexander said in a statement that this boost at its casinos in Melbourne and Perth was a “pleasing result”.

“Particularly at Crown Melbourne (up 73.9 per cent), given the difficult trading conditions in the previous corresponding period,” Mr Alexander said.

Normalised VIP program play revenue was up by 73.9 per cent at the Melbourne casino to $591.8 million from a gambling turnover of $43.8 billion.

Crown declared a final dividend of 30¢ a share, franked at 18¢. The company also announced a new share buyback for $400 million of shares.