Packer power prevails in strata forced sale

When it comes to to collective, aka forced sale of old strata buildings, slated to be renewed, renovated or rebuilt, all it takes is one owner to hold out for it to end with years of negotiation, mediation and litigation.

And even if you’re someone with the purchasing power of James Packer, from one of Australia’s wealthiest families, it can end up in the Land and Environment court.

The James Packer-backed developer Time & Place spent $100 million buying up the 80-studio block of apartments in The Chimes complex in Kings Cross, according to this report from realestate.com.au. 

But one unit owner – who bought into the block for $44,000 in 1982 – held out and refused to sell. On 26 March 2025, the NSW Land and Environment Court made orders – including a compulsory sale order for this last solo holdout for $1.4 million – which was ignored.

Despite being served with court orders and the contract for sale, the holdout owner still refused to comply, so the Court appointed a trustee to execute the sale in June 2025. 

The Court found the trustee appointment necessary under section 186 of the SSD Act to ensure the effectiveness of the original strata renewal orders. This case reflects a rare but significant use of forced sale powers under strata renewal law in NSW.

The developer had previously secured the required 75% owner agreement under the law. The holdout unit owner had rejected an earlier $1.6 million offer and now looks like she will have to pay the developers’ legal costs for failing to comply with an earlier order. Ouch!

Forced sale laws can be tricky

The Chimes redevelopment still requires approval through the state-significant development process and there have been mixed reports on what Time & Place want to build on the site (though you can guess it will be a mix of prestige apartments and possibly some street-level retail).

The Potts Point Preservation Group didn’t love the Time & Place proposal for the new multi-storey building.

This case shows just how complex and drawn-out strata renewal can be, especially when one lot owner refuses to sell. 

It also highlights the powerful new legal tools available under NSW strata and property renewal laws to push through strata redevelopments in the public interest. 

For residents in older blocks where developers might be looking to pounce, it’s a reminder to keep all lot owners informed and engaged as redevelopment pressures grow.

Even deep pockets and big plans can be slowed by just one determined owner.