Billionaire Justin Hemmes takes Sydney Metro to court over claims new station has lowered the value of his $525million Ivy precinct
Hospitality tycoon Justine Hemmes is taking Sydney Metro to court over its new Hunter Street station, which he claims has lowered the value of his famed $525million Ivy precinct nightspot.
Hospitality tycoon Justine Hemmes is taking Sydney Metro to court over its new Hunter Street station, which he claims has lowered the value of his famed $525million Ivy precinct nightspot.
The precinct owned by his company Hemmes Hermitage at 320 and 330 George Street in the Sydney CBD includes the Ivy nightclub and several popular bars and restaurants such as Bar Topa, Tottis and Jimmys Falafel.
Hemmes Hermitage is run by the 52-year-old along with his sister and mother Merivale, who the familys wider $1.4billion hospitality empire is named after.
In a claim filed in the NSW Land and Environment Court, Hemmes Hermitage claimed Sydney Metros compulsory acquisition of lots of land it owned around the Ivy precinct block had caused it to lose easements, or points of access.
These included fire exits and an area of land earmarked for business parking and parking for potential construction works, reported The Sydney Morning Herald.
Hemmes had been pursuing an Ivy 2.0 development since 2015 which would have seen him knock down the current precinct and build a 50,000sqm mixed-use hotel, commercial tower and hospitality complex.
Those plans were shelved earlier this year with the new civil suit claiming the loss of easements has reduced the value of the land from $525million to $506million.
Sydney Metro is arguing the easements had no practical benefit, that the redevelopment potential was not diminished and that, once completed, the Hunter Street Metro Station would increase the value of nearby properties.
Justin Hemmes, 52, (pictured with partner Madeline Holtznagel) is suing Sydney Metro for $19million through his company Hemmes Hermitage
The billionaire restauranteur claims the new Sydney Metro Hunter Street Station lowered the value of his Ivy precinct (pictured) from $525million to $506million
The Hunter Street Metro Station is part of the $25billion Metro West train line to Parramatta.
The station will be below-ground with two towers built above the station; the 58-storey Hunter Street East and 51-storey Hunter Street West.
Merivale is one of two organisations shortlisted to develop the towers.
The Brookfield Consortium is comprised of Brookfield Properties Australia, Brookfield Property Partners, Brookfield Properties and Brookfield Asset Management.
And the Metropolis Consortium is comprised of Hemmes Hermitage, Hemmes Trading, Mirvac Office Developments, Telado, CFT No. 8, Lendlease Development, and Lendlease Building.
The contract is expected to be awarded early next year.
The Hunter Street Metro Station (a render is pictured) is part of the $25billion Metro West train line to Parramatta that will serve the Sydney CBD area
The massive development will include the below ground station and an east and west tower - which Merivale has been shortlisted to develop (a diagram is pictured)
A spokesperson for Sydney Metro told the SMH that the matters are separate and do not affect one another.
A spokesperson for Hemmes Hermitage said they could not comment as the matter was before the court but it was proceeding per the usual course of such matters.
Daily Mail Australia has contacted Hemmes Hermitage and Sydney Metro for further comment.
