Hospitality magnate Justine Hemmes is suing Sydney Metro over its new Hunter Street station, which he says has reduced the value of his famous Ivy Precinct nightspot by $525 million.
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, Totti’s and Jimmy’s Falafel.
Hemmes Hermitage is run by the 52-year-old along with his sister and mother Merivale, after whom the family’s broader $1.4 billion hotel empire is named.
In a lawsuit filed in the New South Wales Land and Environment Court, Hemmes Hermitage claimed that Sydney Metro’s compulsory acquisition of plots of land it owned around the Ivy District block had caused it to lose easements or access points.
These included emergency exits and an area of land designated for commercial parking and parking for possible construction work, he reported. The Sydney Morning Herald.
Hemmes had been pursuing an Ivy 2.0 development since 2015 that would have seen him tear down the current precinct and build a mixed-use hotel, retail tower and 50,000 square meter hotel complex.
Those plans were shelved earlier this year with the new civil lawsuit claiming that the loss of easements has reduced the value of the land from $525 million to $506 million.
Sydney Metro argues that the easements had no practical benefit, that redevelopment potential was not diminished and that, once completed, the Hunter Street metro station would increase the values of nearby properties.
Justin Hemmes, 52 (pictured with partner Madeline Holtznagel) is suing Sydney Metro for $19 million through his company Hemmes Hermitage.
The billionaire restaurateur claims Sydney Metro’s new Hunter Street station reduced the value of his Ivy precinct (pictured) from $525 million to $506 million.
Hunter Street metro station is part of the $25 billion Metro West rail line to Parramatta.
The station will be underground with two towers built above the station; 58-story Hunter Street East and 51-story Hunter Street West.
Merivale is one of two organizations 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 made up 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.
Hunter Street Metro station (a rendering is pictured) is part of the $25 billion Metro West train line to Parramatta that will serve Sydney’s CBD area.
The huge development will include the underground station and an east and west tower, which Merivale has been shortlisted for development (diagram shown)
A Sydney Metro spokesperson told the SMH the matters are separate and do not affect each other.
A spokesman for Hemmes Hermitage said they could not comment because the matter was before the court but was developing “in the usual course of these types of matters”.
Daily Mail Australia has contacted Hemmes Hermitage and Sydney Metro for further comment.
