Tiffany & Co sues NSW for $109m

 

Tiffany & Co is seeking more than $100 million in compensation from the NSW Government after it was forced to move its shop in Martin Place so the Sydney Metro could be built.

The iconic jewellery brand's flagship store and its offices were located in a 22-storey building on the corner of Castlereagh St.

But it had to vacate when the government acquired the property in September 2017 to make way for a new metro line.

It was part of $1.8 billion in property acquisitions that were made to ensure the second stage of the major infrastructure project could go ahead.

In April this year, the brand launched a new flagship store on the corner of Pitt St and King St in the CBD.

Tiffany & Co has now launched legal action in the NSW Land and Environment Court and is suing the Sydney Metro project for $109 million, The Sydney Morning Herald reported.

Tiffany & Co’s new Sydney flagship store at 175 Pitt Street.
Tiffany & Co’s new Sydney flagship store at 175 Pitt Street.

The full $109,173,693 claim for "loss attributable for disturbance" is made up of a one-off relocation cost of $57 million, $41 million for additional expenses following the move and almost $2 million in increased operating costs.

The draft statement of claim also includes $421,615 for legal costs and $253,478 for compensation consultants.

On top of that, the jeweller is also pushing for the government to hand over $312,539 in market value compensation.

A spokesperson for Sydney Metro told news.com.au that the compensation offered to Tiffany & Co as part of the acquisition process was "determined by the Valuer General in accordance with the Land Acquisition (Just Terms Compensation) Act".

"As the proceedings remain before the Court, it would be inappropriate to make further comment at this time," the spokesperson added.

News.com.au has contacted Tiffany & Co for comment.

 

Tiffany & Co's legal action comes as the NSW government announced 116 properties extra properties would be acquired to make way for the new metro line between the Central and Parramatta.

Metro stations will be built at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock and the Bays Precinct.

Around 23 residential properties and 93 business sites will be forcibly acquired in order for construction to go ahead.

"This is a project that's underground and, you know, there's more residential properties which we've had to work on with Parramatta Light Rail than what we have to do with this project so it just demonstrates the power of the project," Transport Minister Andrew Constance said.

The list of proposed stations for the new Sydney metro.
The list of proposed stations for the new Sydney metro.

There has also been controversy surrounding the new line after NSW Sports Minister John Sidoti was found to have property interests at one of the new station sites.

He has interests in two properties near the site of the proposed station on Great North Rd in Five Dock.

Mr Sidoti stood aside from cabinet in September while the Independent Commission Against Corruption investigates allegations of misconduct.


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