Purchasers of 154 land blocks at Marsden Park in Sydney’s north-west are set to receive substantial cash payments following a multimillion-dollar class action settlement. The settlement’s specific figures remain confidential due to a non-publication order, with participants bound by non-disclosure agreements. Justice Ian Jackman confirmed the settlement today, deeming the terms "fair and reasonable" for all affected families.
The buyers, predominantly families, had secured contracts for the blocks at the Clydesdale Estate during 2020 and 2021, amid the COVID-19 pandemic, with prices ranging from $600,000 to $700,000 per block. They made a 10 per cent downpayment, alongside approximately $30,000 in stamp duty, purchasing from Boyuan Holdings Limited (BHL) and its associated company, Cyan Stone.
As property values soared, the anticipated development faced significant delays, eventually causing ownership of the properties to transfer to Astro Fort, who then re-listed the blocks for sale. The initial purchasers were blindsided by online advertisements indicating that their blocks were on the market again, often at prices exceeding $1 million—a stark contrast to their original purchase price.
An investigation by A Current Affair last year revealed the intricate dealings that left these families in limbo for five years. In one poignant example, health worker Madhura Bakshi expressed dismay when she discovered her $620,000 block was being offered at $1.097 million, describing the situation as "heartbreaking."
The reselling of the land, potentially valued at $150 million collectively, spurred the class action by the buyers in the Federal Court. They aimed to prevent the resale and sought compensation for their lost capital gains. Cyan Stone’s voluntary liquidation in September 2024 revealed that nearly $9 million in deposits were listed among the company’s unsecured creditors, despite the funds being supposedly secured in a solicitor’s trust.
Throughout the proceedings, Judge Jackman acknowledged the family’s courage in pursuing their claims and indicated that there were merits to their arguments regarding breaches in contract. Ultimately, after protracted mediation efforts, Astro Fort agreed to settle the case, clearing the way for the families to move on from this challenging chapter of their lives.
While no final court ruling will determine the case’s merits, the settlement allows the families to receive compensation and regain stability as they work towards rebuilding their lives after a prolonged period of uncertainty.