A collapsed Melbourne property developer has launched legal action against the Victorian government over the compulsory acquisition of land for the Suburban Rail Loop (SRL), alleging the state has undervalued the property. APH Holding, which entered administration last year with debts of approximately $150 million, is seeking increased compensation for a site on Whitehorse Road in Box Hill.
The dispute centers on a strip of shops located at 941-951 Whitehorse Road, which the state government offered to purchase for $13.9 million in November 2024, based on valuations from the Valuer-General Victoria. APH Holding has argued that the land is worth significantly more, initially demanding $18.5 million in April 2025 before gradually lowering its claim to $16.6 million by September 2025. Negotiations have been ongoing for nearly two years without resolution, leading to a Supreme Court case where a judge will determine the appropriate compensation.
APH Holding had earlier obtained approval to develop a commercial building and a five-star hotel on the site but placed the property on the market prior to its acquisition by the government, which has repurposed the land as a worksite for SRL construction.
This dispute is the latest in a series of legal battles arising from the Victorian government’s compulsory land acquisition associated with its Big Build infrastructure program. Earlier this year, retail giant Woolworths sued the Suburban Rail Loop Authority for over $70 million concerning the compulsory purchase of a warehouse in Notting Hill, near the upcoming underground Monash station.
Additionally, a separate conflict has emerged over a riverfront property in Wyndham Vale, which the government plans to incorporate into the Werribee Township Regional Park. The state’s offer of $8.6 million was contested by the owners, who argue the land’s value could reach $55.4 million due to expected residential zoning and development potential.
Legal challenges concerning compensation are not limited to the SRL; the Supreme Court recently ordered the government to pay an extra $20 million in addition to an initial $30 million offer to the Boroondara Tennis Centre. The centre, comprising 23 tennis courts, a clubhouse, and a bungalow, was compulsorily acquired in 2022 to facilitate construction of the North East Link freeway project.
Meanwhile, Premier Ben Carroll announced in August that government officials had identified around $2 billion in potential savings on the Suburban Rail Loop project by scaling back station interchanges. The announcement followed polling indicating that over half of surveyed voters favor pausing or canceling the $34.5 billion infrastructure program. The evolving legal and political landscape underscores escalating tensions surrounding the state’s ambitious transport developments and their impact on landowners and communities.