Lendlease, Penrith Council Clash Over Sinking Suburb Claims


Lendlease and Penrith City Council are continuing to clash over claims 841 homes in Jordan Springs East are at risk of sinking.

Lendlease issued a notice to all residents in the Sydney suburb to inform them of their commitment to repair or in the worst case, buy back properties if they are found to have any issues in the next 15 years.

Lendlease claim only 90 homes are affected by subsidence and have already removed six of these homes and offered to purchase or repair others.

However council is still investigating the matter across the entire suburb and will not remove any notations on planning certificates until investigations are complete.

Penrith mayor Karen McKeown said the whole situation is very disappointing but they are trying to deal with it in the best interests of the residents.

“The media were notified before council [of the latest Lendlease offer] so it’s made it very hard difficult to get across the level of detail,” McKeown said.

“In terms of what that compensation looks like or what that means for the notifications, there’s still some ongoing investigations happening.

“We’ve hired preeminent geotechnical experts in the field to inform us on what’s going on out there.

“If Lendlease are stepping up to the plate to actually acknowledge their responsibility here, well council can only congratulate them for finally doing that.”

A Lendlease spokesperson said they wanted to provide residents with certainty of the future of their homes, ahead of the New Year.

“Based on our investigations and expert advice, we firmly believe the vast majority of properties aren’t impacted by excessive settlement, which is localised to approximately 90 houses in the precinct’s Armoury Road area,” the spokesperson said.

“Penrith City Council has placed a notation on our customers properties at Jordan Springs East, the vast majority of which we believe are [not] impacted.

“In response to council’s actions, we’ve proactively reassured residents—beyond the 90 we believe may be impacted—that we’ll support them in the unlikely event that their property experiences settlement issues beyond the requirements of the Australian Standard.

“Investigations by our independent experts indicate that these properties will [not] be impacted.

“We’re committed to continuing to work with council on behalf of our customers to remove the notation on those [unaffected] properties.”

This level of compensation is an improvement on that taken up during the Opal Towers' saga which left residents in the lurch with an $1 million insurance bill.

Meanwhile residents of Jordan Springs East are concerned about the reputation of their suburb which could impact property prices in the area.

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