Billionaire Justin Hemmes takes Sydney Metro to court over new station lowering value of his $525 million Ivy precinct

Hospitality mogul Justine Hemmes is taking Sydney Metro to court over the new Hunter Street station, which he claims has reduced the value of his famous Ivy district nightclub from $525 million.

The precinct owned by his company Hemmes Hermitage at 320 and 330 George Street in Sydney’s 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 with his sister and mother Merivale, after whom the family’s wider $1.4 billion hospitality empire is named.

In a claim filed in the NSW Land and Environment Court, Hemmes Hermitage alleged that Sydney Metro’s compulsory acquisition of much of the land it owned around the Ivy precinct block had caused the loss of easements or access points.

These include emergency exits and an area of ​​land intended for business parking and parking for possible construction work The Sydney Morning Herald.

Hemmes has been pursuing an Ivy 2.0 development since 2015, which would have seen him demolish the current district and build a mixed-use hotel, commercial tower and 50,000 m² hospitality complex.

These plans were put on hold earlier this year when the new civil suit alleged that the loss of easements had 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 reduced and that the Hunter Street Metro Station, once completed, would increase the value 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 restauranteur claims the new Sydney Metro Hunter Street Station has 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 train line to Parramatta.

The station will be underground with two towers above the station; the 58-storey Hunter Street East and 51-storey Hunter Street West.

Merivale is one of two organizations shortlisted to develop the towers.

The Brookfield Consortium consists of Brookfield Properties Australia, Brookfield Property Partners, Brookfield Properties and Brookfield Asset Management.

And the Metropolis Consortium consists of Hemmes Hermitage, Hemmes Trading, Mirvac Office Developments, Telado, CFT No. 8, Lendlease Development and Lendlease Building.

The expectation is that the contract will be awarded early next year.

The Hunter Street Metro Station (a render is pictured) is part of the $25 billion Metro West train line to Parramatta that will serve Sydney’s CBD area

The massive development includes the underground station and an east and west tower – which Merivale has been shortlisted to develop (a diagram is pictured)

A spokesperson for Sydney Metro told SMH the cases are separate and do not affect each other.

A spokesperson for Hemmes Hermitage said they could not comment because the matter was before the courts, but it was proceeding “as usual in such cases.”

Daily Mail Australia has contacted Hemmes Hermitage and Sydney Metro for further comment.