This article is from the Australian Property Journal archive
TAXPAYERS will be slugged $100 million to cover the cost of the New South Wales government’s acquisition of a highly contaminated site near Parramatta at more than three times its value, and the expensive clean-up required, in a deal that netted a developer $15 million in just a few months.
NSW Premier Gladys Berejiklian has since said the deal, exposed by a joint investigation by the Sydney Morning Herald and the ABC’s 7.30, should be referred to ICAC.
Property developer Billbergia paid $38 million for the 6.2 hectare property at 6 Grand Ave in Camellia in November 2015 for $38 million. Just a few days later, the state government’s announcement of the preferred route for the Parramatta light rail project effectively earmarked the site as a designated tram depot.
The report found a special “out of session” meeting of senior government officials resulted in the backtracking of earlier plans to require Billbergia to pay remediation costs or seek compulsory acquisition of the site.
Billbergia sold the property to the state government just seven months later for $53.5 million – despite the Value-General deeming the land to be worth $15.5 million.
Taxpayers will also need foot a bill likely to come in at $48 million to prevent hazardous chemicals spilling out from the site.
The SMH and 7.30 report stated that in the same month it acquired 6 Grand Ave, Billbergia also bought 3 Grand Ave for $16.5 million, and two months later 7 Grand Ave for $7.75 million, and in April 2016, 9 Grand Ave for $14 million. It noted that Billbergia was part of the Westline Partnership, a lobby group set up in 2014 to push for the fast-tracking of a light rail route along Sydney’s Olympic Park corridor in the west, which would include Camellia.
The ABC reported Premier Gladys Berejiklian saying, “I’m extremely concerned by it and I think it warrants appropriate investigation,” when responding to the report, and that it should “potentially – absolutely” be referred to ICAC.
NSW Transport Minister, Andrew Constance told the SMH and 7.30 investigation he had requested the Auditor-General to review the matter.
This is the second controversial land deal in NSW brought to light after the Australian National Audit Office found the Australian government paid $30 million for the Leppington Triangle site which was valued at just $3 million.
