Justin Hemmes files claim against Sydney Metro for devaluing Ivy precinct
Justin Hemmes has claimed Sydney Metro’s new Hunter Street station has lowered the value of Merrivale’s Ivy precinct nightspot.
The precinct is owned by Hemmes Hermitage, which the 52-year-old runs with his sister and mother Merivale. The precinct includes the Ivy nightclub and restaurants such as Bar Topa, Totti's and Jimmy's Falafel among other venues.
According to Hemmes, in a claim filed in the NSW Land and Environment Court, the new station has caused the Ivy precinct block to lose easements or points of access including fire exits and an area of land earmarked for business parking and parking for potential construction works.
The loss of easements was the catalyst for a civil suit claiming the loss of easements had reduced the value of the land from $525 million to $506 million.
The station has put a spanner in the works for Hemmes’ redevelopment plans, which would have seen the current precinct knocked down in favour of a 50,000sqm mixed-use hotel, commercial tower and hospitality complex.
Sydney Metro contends that the easements offer no practical benefit, have not reduced the redevelopment potential, and that once completed, the Hunter Street Metro Station will increase the value of surrounding properties. The station will be underground, with two towers — Hunter Street East (58 storeys) and Hunter Street West (51 storeys) —constructed above it.
Merivale is one of two organisations shortlisted to develop the towers. The Brookfield Consortium consists of Brookfield Properties Australia, Brookfield Property Partners, Brookfield Properties, and Brookfield Asset Management. The Metropolis Consortium includes Hemmes Hermitage, Hemmes Trading, Mirvac Office Developments, Telado, CFT No. 8, Lendlease Development, and Lendlease Building.
A Sydney Metro spokesperson told the SMH that these issues are separate and unrelated. A spokesperson for Hemmes Hermitage declined to comment, citing ongoing legal proceedings, but stated the matter was progressing "as usual."
Jonathan Jackson, 1st October 2024
