In a decision with ramifications for South Australia’s property sector, a court has rejected a 53m tower plan permitted by a state panel in favour of a 25m height cap negotiated 12 years ago between a council and the project’s developer.

Kelledy Jones Lawyers director Victoria Shute—who did not act in the SA Environment, Resources and Development Court trial—told The Urban Developer the judgment, handed down last month, was “pivotal” for developers and local governments.

“There hasn’t been an awful lot of cases on land management agreements [LMAs],” the Adelaide-based lawyer said of the case that weighed the worth of an existing LMA between developer Zhengtang Precinct Loft P/L and the City of Adelaide.