Plans by Ingham’s Group to vacate prime real estate in Wanneroo have been delayed after property developer Harvis Capital won a Supreme Court ruling overturning development approval for the chicken producer's new site in Muchea.
Plans by Ingham’s Group to vacate prime real estate in Wanneroo have been delayed after property developer Harvis Capital won a Supreme Court ruling overturning development approval for the chicken producer's new site in Muchea.
The court ruling could delay plans by Stockland to develop the 40 hectare plot currently occupied by Ingham's near the Wanneroo town centre.
Stockland bought the plot in 2017 for $53 million and has outlined plans to devlop up to 800 residential lots.
Early this year, planning group Urbis released detailed plans for the site on behalf of Stockland for public consultation.
Harvis Capital challenged the Mid-West Wheatbelt Joint Development Assessment Panel's decision to approve plans for Ingham’s to develop a feed mill on a property on Brand Highway in Muchea, near Harvis Capital’s industrial estate.
Harvis Capital is developing the Muchea Industrial Park which will adjoin the Muchea road train assembly area, servicing the state’s high-wide-load truck corridor, providing access for triple road trains on Great Northern Highway.
Business News understands Ingham's had initially considered moving to the Harvis industrial estate before opting for an alternative site nearby.
Harvis, which was represented by law firm Lavan, told the Supreme Court it had spent money developing its industrial estate and believed its commercial interests in carrying out industrial subdivision and development would be undermined if Ingham’s built the feed mill on land outside of recognised industrial areas.
“In part, its concern is that the development approval for the subject land will set a precedent that will encourage other prospective proponents to apply for development on less expensive agricultural resource land, and make it more difficult to attract buyers to lots in the industrial estate,” the judgement said.
Harvis Capital argued the development application should not have been approved because the application proposed either an ‘industry’ or ‘industry-light’ land use, and the property was zoned as ‘agricultural resource’.
In his judgement, Supreme Court Judge Jeremy Allanson agreed and ruled in favour of Harvis Capital.
“It follows that the application for development was not a use that could be approved in the agriculture resource zone, as it was not within the use class 'industry-rural' properly construed,” the judgement said.
Business News contacted Ingham’s and Harvis Capital for comment.
In 2017, Ingham's announced it was going to invest more than $70 million to build the feed mill by 2020 and relocate from its existing facility in Wanneroo.
Private investment group Sirona Capital spun-off Harvis Capital in 2018.