Photo Caption: The Supreme Court of Victoria.

The developers of the much-maligned Pakenham Place are taking the state government to trial, seeking just under $24 million in damages for the acquisition of land for the under-construction community hospital.
While the Pakenham Community Hospital is taking shape, the former owners of the land, Pakenham Place Shopping Centre Pty Ltd, are set to put the Department of Health on trial before the Supreme Court of Victoria for their compulsory acquisition of the land.
The Pakenham Place developer are seeking $23.9 million in damages after rejecting two offers of compensation from the department to the tune of $8 and $12 million.
The department acquired the 12-acre site, formerly comprising three lots in the southeastern section of the original property of Pakenham Place, in 2022.
This was only two years after Banco Group purchased Pakenham Place with a vision of redeveloping the site that many residents regard as an eyesore.
The current claim made by the developer says they are owed $19.2 million as compensation for the acquisition, while the additional $4.7 million claimed in damages for costs incurred from relocating tenants, a redundant permit application and building contract, resubmission of a new permit and associated designs, torn-up lease agreements and escalating construction costs.
The claim can vary until trial as the developer flagged including a recent rent reduction requested by Coles in Pakenham Place as a result of impacts from the community hospital’s construction, as well as legal costs.
In 2022, the department offered $8 million as severance for the acquisition which was rejected by the developer.
A revised sum was proposed in 2023 for $12 million which was subsequently rejected.
The matter was brought before the Supreme Court in 2024.
A trial is set for 5 October 2026.