Billionaire pub baron Justin Hemmes is embroiled in a multi-million dollar dispute with Sydney Metro over real estate that was later bought to build a new Metro station.
The Merivale boss’ family business empire Hemmes Hermitage Pty Ltd claims the plot of land in George Street, in the heart of the Sydney CBD, is worth $215million.
Lawyers for the transport agency however, presented documents in court earlier this year to claim the market value of the land is only worth less than half of that amount at $91million.
The dispute was ignited after Sydney Metro acquired two properties opposite Wynyard Station in 2022, which Hemmes Hermitage purchased for $77million in 2018.
The properties were acquired compulsorily as part of the ongoing construction of Hunter Street station, which will form part of the new $25billion Metro West line.
Hemmes Hermitage said at the time the adjoining properties at 312 and 314-318 George Street would become part of a redevelopment of The Ivy precinct, the Sydney Morning Herald reported.
The company’s legal representatives launched legal action in the Land and Environment Court in June last year to dispute the valuation of the land.
Hemmes Hermitage’s legal team argued that the land was worth double the amount Sydney Metro was willing to pay.
The company also argued the properties were vital to create a multi-purpose commercial, hotel and hospitality venue as part of the sprawling Ivy precinct.
Sydney Metro previously rejected the an offer of $102million for the land by the NSW Valuer General.
Lawyers for the transport agency said the ‘various theoretical development schemes’ had not progressed significantly when they acquired the land.
The lawyers also argued that a laneway owned by the City of Sydney Council would have stopped the proposed development of the properties.
The state government is required to pay legal costs concerning the compulsory acquisition of land if the amount is reasonable.
Sydney Metro claimed the legal fees that Hemmes Hermitage has incurred until June this year, which is worth $498,000, is unreasonable.
The latest legal battle comes after the company launched a separate lawsuit in September seeking $19million from Sydney Metro over the acquisition of the land.
The company claimed that it lost several access rights, which they estimate reduced the and value of the Ivy Precinct from $525million to $506million.
Mr Hemmes is also part of a group of companies that are fighting for the rights to build two skyscrapers that are 51 and 58 storeys above the Metro station.
A Hemmes Hermitage spokesperson told the the Sydney Morning Herald they had ‘nothing to say’ about the ongoing court case, other than it’s ‘proceeding per the usual course of such matters.’
A Sydney Metro spokesperson said ‘owners who disagree with the Valuer General’s determination are able to appeal to the Land and Environment Court’.
Daily Mail has contacted Sydney Metro for further comment.