Developer Sirius wins appeal over land value

Developer Sirius has won an appeal following challenges lodged with the NSW Valuer General over land tax.

The NSW Chief Commissioner of Revenue published two land tax assessments for Lots 100 and 101 at 2-60 Cumberland Street in The Rocks, Sydney on 17 February 2023 and 9 January 2024.

In August this year, the developer completed the controversial transformation of the Sirius building on a 3,671.5 sq ft site. m, bordered by George Street, Cumberland Street and Gloucester Street, from public housing to luxury apartments.

The building, designed by architect Tao Gophers for the New South Wales Housing Commission in 1978–1979, is a prime example of Brutalist architecture in Australia.

The former coalition government sold the former public housing block in 2019 for $150 million to private equity firm JDH Capital.

The redevelopment includes 76 luxury apartments, 60 of which sold in 2021 for $405 million.

The commissioner’s initial land valuation as of July 1, 2020 was $105 million; $130 million as of July 1, 2021 estimate; $148 million as of July 1, 2022 estimate; and $155 million as of July 1, 2023 estimates.

Sirius filed objections to these assessments with the Assessor General on April 18, 2023 and March 11, 2024.

On February 28 this year, the Valuer General dismissed objections to the 2020 assessments but allowed objections to the 2021 and 2022 assessments. On June 18, the objection to the 2023 assessment was resolved.

As a result, the land value was $105 million as of July 1, 2020; $123.5 million as of July 1, 2021; $131 million as of July 1, 2022; and $131 million as of July 1, 2023.

On April 29 this year, Sirius filed an appeal with the Land and Environment Court against the land value determinations for 2020, 2021 and 2022. On August 12, it also filed an appeal against the decision to determine the value of the land for 2023.

Summary of ratings

	2020 estimates	2021 estimates	2022 estimates	2023 estimates
New South Wales Chief Revenue Commissioner’s estimates	$105 million	$130 million	$148 million	$155 million
Ruler’s assessments of the Valuer General	$105 million	$123.5 million	131 million dollars	$131 million
Sirius LEC Application Evaluation	$62.8 million	$77.7 million	$88.5 million	less than $131 million
Sirius’ Statements Regarding Objection Evaluation (COVO)	no more than $87.8 million.	no more than $96.6 million.	no more than $101 million	no more than $90.9 million.
Valuer General’s assessments on LEC appeal	$171.8 million	$185.3 million	$194.2 million	$194.4 million
LEC final decision on assessments	$86.3 million	$90.6 million	$95.1 million	$88.4 million

_{Source: NSW Land and Environment Court, 2024.}

Sirius stated in its filing with the court that the 2020 value of the land would be $62.8 million, and in its objections it stated no more than $87.8 million.

Similarly, the developer stated that the 2021 value of the land in his application was US$77.7 million and in his objections was no more than US$96.6 million, that the 2022 value of the land was US$88.5 million in his application and no more than $101 million in his objections, and that in 2023 the Land Value was less than $131 million in his application and no more than $90.9 million in his objection.

The NSW Valuer General was a defendant in the case and claimed the land value for 2020 was $171.8 million; $185.3 million for 2021; $194.2 million for 2022; and $194.4 million for 2023.

On November 8, 2024, a conciliation meeting was held with all parties, at which the parties reached agreement on all four estimates, including the $88.4 million estimate for 2023.

The agreement will lower the landowner’s tax bill.