A dispute between the developers of a $280 million Belconnen apartment complex is headed for the Supreme Court, but buyers have been reassured there will be no delays to the build.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Construction is under way on The Markets, which will include more than 300 units on Ibbott Lane, opposite the new Capital Food Market.
More than half of the units have already sold, one of the developers said.
The project is being delivered by Beldev Nominees, a joint venture between developers Shane Anderson, Mena Ibrahim, Peter Micalos and their companies.
In recent months the partnership has soured, leading Mr Anderson to commence legal proceedings against the other two developers in the Supreme Court of NSW.
Mr Micalos and Mr Ibrahim said they intend to defend the claims "vigorously".
In a statement of claim filed to the court, Mr Anderson alleged Mr Ibrahim and Mr Micalos executed a transfer of Mr Anderson's shares without his consent.
"Anderson had not agreed to the transfer of the Anderson Shares to Beldev MI [Mr Ibrahim's company] or at all," the statement of claim read.
Mr Anderson also alleged the other developers executed a "purported resignation" of Mr Anderson as a director and secretary of Beldev Nominees.
"Anderson had at no stage resigned as director or secretary of Beldev Nominees," the statement of claim read.
According to the court document, this came after Mr Anderson was requested to pay more than $2.9 million in additional equity for the project, which he did not pay within the three-day timeframe requested.
In his statement of claim, Mr Anderson also alleged the developers were required to pre-sell a qualifying number of apartments in order to access funding.
He alleged Mr Ibrahim and Mr Micalos "had not met the qualifying pre-sales condition by 15 August 2023" however had told the financier the qualifying pre-sales condition had been met.
Developers to defend claim 'vigorously'
The matter has been listed for a directions hearing at the Supreme Court in Sydney on May 28, the document states.
Mr Micalos said he and Mr Ibrahim had received the statement of claim and would be "defending it vigorously".
The two directors were adamant the dispute would not impact buyers.
"The good news is the proceedings won't have the slightest effect or delay on The Markets," Mr Micalos said.
"Construction is well under way with world-renowned, tier-one builder Icon [Constructions] and completion is on track for late 2025, early 2026."
Mr Micalos said The Markets was a "world-class sustainable project" that would create a "vibrant hub" in Belconnen.
He said more than 170 units had already been sold.
Icon Constructions director Aaron Clingan said construction was on track and the team was preparing to pour the basement slab this month.
"We're probably about three weeks ahead of schedule from the contract program," he said.
The Markets project was first announced in April 2022, when the developers had lodged their application with the ACT planning authority.
Plans include a 10-storey building with 313 "extra-large" apartments, a rooftop pool and ground-floor retail precinct.
The group purchased the land, a 6000-square-metre former car park, for $14 million from Elanor Investors Group, the group who redeveloped the Capital Food Market.
Stage two of The Markets, on the other side of Ibbott Lane, has also been submitted for approval and includes another two towers of residential homes and a hotel.