Thu Sep 12 10:20:51 UTC 2024: ## Luxury Retail Giant Sues Queen’s Wharf Developer Over Alleged Misleading Conduct

**Brisbane, Australia** – A legal battle is brewing between Destination Brisbane Consortium, the developer behind the $3.6 billion Queen’s Wharf precinct, and luxury retailer DFS Australia Pty Ltd. DFS, a subsidiary of the Moët Hennessy Louis Vuitton conglomerate, has filed a lawsuit in the Supreme Court, accusing the consortium of misleading or deceptive conduct.

The dispute stems from the condition of the premises leased by DFS, including the heritage-listed Printery Building. DFS claims it spent over $10 million on fit-out works, only to discover that the spaces were not ready due to the presence of lead paint and mold. The consortium’s principal contractor, Multiplex, allegedly received a report in February 2021 identifying lead-based paint at Queen’s Wharf, including in the Printery. DFS further disputes the consortium’s use of two bank guarantees totaling US$6 million following the termination of the lease agreement.

In a counterclaim, Destination Brisbane Consortium denies DFS’s allegations and argues that the retailer engaged in deceptive conduct. DBC states that DFS claimed strong relationships with luxury brands, leading them to enter into the lease agreement. However, DBC asserts that DFS failed to secure at least one of Louis Vuitton, Dior, Cartier, or Gucci for the precinct. DBC claims it suffered financial losses due to this missed opportunity and seeks undisclosed compensation for lost rent. The consortium also alleges it incurred costs for dehumidifiers and the removal of a ceiling in the Printery Building, totaling almost $1 million.

The counterclaim also disputes handover and lease agreement dates and specifications, as well as the consortium’s liability for addressing the condition of the walls before fit-out works began. While DFS claims it terminated the lease agreement in December 2023, DBC maintains that it terminated the lease on January 30, 2024.

This legal battle comes after the consortium settled a separate lawsuit from builder Multiplex regarding design changes and delays to the project, potentially costing the group up to $170 million. No replacement retailer for DFS has been announced as the legal proceedings continue.

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