State Government spends more than $300m buying properties in North Sydney and Crows Nest for Sydney Metro
THE State Government has opened its multi-million chequebook on the lower north shore to buy tracts of land for the Sydney Metro rail project.
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THE State Government has opened its chequebook on the lower north shore to buy tracts of land for the Sydney Metro.
It has spent more than $300 million in North Sydney and Crows Nest on office blocks, shops and apartments. Demolition crews have already moved in and the buildings will make way for two new stations.
Not all the purchases by Transport for NSW have yet been disclosed in CoreLogic RP Data records and the final bill could be tens of millions of dollars higher.
In North Sydney the most expensive purchase was the $101 million office tower at 181 Miller St. The distinctive white building previously housed a Westpac branch.
The neighbouring block at No. 189 cost $20.74 million, while a historic Victorian-era watch shop cost $3.9 million. The Government also snapped up the entire Tower Square shopping centre in the heart of the CBD.
A total of 39 separate lots were bought at the centre, costing more than $79 million. Three of the sales figures have not yet been released.
Tower Square was a popular lunchtime spot for office workers and was built in an Italianate style.
Further up Miller St, No. 194 was bought for $15.1 million and No. 196a for $1.84 million. They were planned to host a services station for the Metro, but a separate block across the road has been bought for this (more detail below).
In Crows Nest the bill so far is $83.8 million.
A strip of properties along the Pacific Highway is being taken out for the Metro, from No. 477 to the corner of Oxley St. Two of the blocks bought by Transport for NSW had been earmarked for apartment developments.
A retail and residential development had been planned for No. 479, but the site was sold to Transport for NSW for $9.87 million.
Wyndel Property Group CEO Tony Blanche said millions of dollars’ worth of construction had already been completed at the site.
“We had a lot of expenses,” he said. “We are disappointed we lost the site and the opportunity. It was a blow to the company, but I can’t say the process wasn’t fair.”
About 14 buyers who had bought apartments off the plan were also compensated by the Government, he said.
The nearby Oxley apartment tower was estimated to have been worth about $90 million and was planned for a site at 521 Pacific Highway.
The sale price of this site has not been disclosed in RP Data records.
The most expensive purchase in the suburb has been a commercial building at 511 Pacific Highway.
Not all the sales have yet been declared and the current total is $22.4 million for 10 separate lots.
Other sales include $13.4 million for No. 501, $8.6 million for No. 497 and $6 million for No. 477.
Transport for NSW also paid $5 million to Australia Post for the post office building at No. 495.
The Pacific Highway is a popular destination for furniture shoppers and the development is wiping out several of the home outlets.
North Sydney Mayor Jilly Gibson said there was concern in Crows Nest about the impact the Metro would have on residents and small businesses.
“This Metro station appears to be more problematic,” she said.
“The potential impacts are greater on Crows Nest than the North Sydney CBD.
“It’s a more sensitive area ... locals see Crows Nest as a village and don’t want that destroyed by Metro.”
Overall, though, she believes buying the properties for the Metro will be “money well spent”.
Transport for NSW said it worked with independent property valuers to determine the amount of compensation payable.
“In all property transactions, Transport for NSW adheres to the Land Acquisition (Just Terms Compensation) Act 1991,” a spokeswoman said.
BLOCK’S FUTURE IN LIMBO
The future of two buildings purchased to make way for the Sydney Metro in North Sydney is now in limbo.
A block at 194-196a Miller St was due to be demolished to allow for the construction of a services building for the rail line.
The State Government spent almost $17 million buying the two buildings, according to figures from CoreLogic RP Data.
But Transport for NSW was forced to go back to the drawing board when the project reached planning approval.
A “number of impacts” were identified with the original location for the services building, a TFNSW spokeswoman said.
The Department of Planning required TFNSW to investigate alternative locations that would deliver “better community and environmental outcomes”.
It is buying land nearby on McLaren St for the services building instead.
The buildings housed the popular Big Stone restaurant, Nando’s satellite office and a website design company called Wiliam. Big Stone closed its doors in November and there is still a sign in the window thanking customers for their support.
“We have closed ... due to Sydney Metro’s expansion,” the note reads. “Thank you so much for the past 6 years. We will take a short break for the time being and open a new restaurant one day.”
A spokeswoman for Nando’s said it moved out of 196a about a year ago and that it didn’t impact the company. It was a tenant.
The 194-196a site is next door to elite girls school Monte Sant’ Angelo Mercy College. In its submission about the Sydney Metro project, the school said the noise impact on its theatre, main hall and recording areas was significantly underestimated.
It also added that construction noise and vibration on residences would be “unacceptable”.
“The northern shaft site should be relocated away from the school,” the report said. “The impacts on the Monte campus are completely understated.”
Transport for NSW said the new site will include a second station entrance, accessed by lifts and an underground pedestrian link.
The original location will be offered back to the former owners.
“Once the new services building location at 50-52 McLaren Street, North Sydney receives project approval, Transport for NSW will offer 194 and 196A Miller Street, North Sydney back to the former property owners at the market value at that time, as per the legislative change that came into effect on 1 March 2017 as part of the Russell Review,” a spokeswoman said.
“If the former property owners express no interest in purchasing the properties back, the properties will be considered surplus to project requirements and sold under TfNSW property disposal guidelines.
“Transport for NSW is still working with the property owners at 50-52 McLaren Street to finalise the sale.”
The Mosman Daily has attempted to contact Big Stone and Wiliam for comment.
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