The dispute centres on the compulsory acquisition of Tiffany & Co.’s former Sydney flagship store and regional office, located at 39 Martin Place, for the city’s Metro rail project.
The building’s owner, Dexus Holdings, sold the tower – and its leasehold in an adjacent shopping area – to Transport For NSW, the government department that controls Sydney Metro, for $332 million in November 2016.
Tiffany & Co. was forced to relocate a year later when the 22-storey block was scheduled for demolition. It had leased the high-profile Martin Place premises for more than 10 years.
A temporary store and office were established before the new flagship store was opened in April this year, months behind its predicted completion date.
In court documents, Tiffany & Co. claims it is owed $109 million in compensation for the forced move, including relocation costs of $57 million, $41 million in additional expenses, $2 million in increased operating costs, legal and consulting fees totalling more than $600,000, and $300,000 in ‘market value compensation’.
The claim has been made under the Land Acquisition (Just Terms Compensation) Act 1991 and will be heard in the NSW Land and Environment Court
A spokesperson for Sydney Metro told the Sydney Morning Herald that the compensation offered to Tiffany & Co. was determined by the Valuer General in accordance with the Act, but did not confirm the amount.
A conciliation conference has been scheduled for 12 November.
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