Billionaire pub baron Justin Hemmes is embroiled in a multi-million-dollar dispute with Sydney Metro over real estate he later bought to build a new Metro station.
Merivale boss’s family business empire, Hemmes Hermitage Pty Ltd, says the land on George Street, in the heart of Sydney’s financial district, is worth $215 million.
However, lawyers for the transportation agency filed court papers earlier this year to claim that the market value of the land is only worth less than half that amount: $91 million.
The dispute began after Sydney Metro acquired two properties opposite Wynyard station in 2022, which Hemmes Hermitage bought for $77 million in 2018.
The properties were compulsorily acquired as part of the ongoing construction of the Hunter Street station, which will be part of the new $25 billion Metro West line.
Hemmes Hermitage said at the time that the adjoining properties at 312 and 314-318 George Street would become part of a redevelopment of The Ivy district, the Sydney Morning Herald reported.
The company’s legal representatives launched legal proceedings in the Land and Environment Court in June last year to challenge the valuation of the land.
Hemmes Hermitage’s legal team argued the land was worth twice the amount Sydney Metro was willing to pay.
Billionaire pub baron Justin Hemmes (pictured right) is embroiled in a multi-million-dollar dispute with Sydney Metro after the transport agency acquired two properties in Sydney’s central business district.
The company also argued that the properties were vital to creating a multi-use retail, hospitality and hospitality venue as part of the sprawling Ivy precinct.
Sydney Metro previously rejected the NSW Valuer-General’s $102 million offer for the land.
Lawyers for the transportation agency said the “various theoretical development plans” had not progressed significantly when they acquired the land.
The lawyers also argued that a Sydney City Council-owned street would have stopped the proposed development of the properties.
The state government is obliged to pay legal costs related to the compulsory acquisition of land if the amount is reasonable.
Sydney Metro said the legal fees incurred by Hemmes Hermitage up to June this year, amounting to $498,000, are unreasonable.
The latest legal battle comes after the company launched a separate lawsuit in September seeking $19 million from Sydney Metro for acquiring the land.
Hemmes Hermitage Pty Ltd claims the land on which the two properties are located is worth $215 million (pictured, land acquired by Sydney Metro and Ivy Precinct)
Hemmes Hermitage said at the time that the properties would become part of a redevelopment of The Ivy precinct, a popular restaurant and nightspot in Sydney (pictured at The Ivy).
The company said it lost several access rights, which it estimates reduced the value of the Ivy Precinct from $525 million to $506 million.
Hemmes is also part of a group of companies fighting for the rights to build two 51- and 58-story skyscrapers above the Metro station.
A spokesperson for Hemmes Hermitage told the Sydney Morning Herald they had “nothing to say” about the ongoing court case other than “proceeding in the usual course of these types of matters”.
A Sydney Metro spokesperson said “landowners who disagree with the Valuer-General’s determination can appeal to the Land and Environment Court.”
Daily Mail Australia has contacted Sydney Metro for further comment.
