Controversial MLC Building Heritage Listing Overturned

Investa has won its legal battle to overturn a rushed heritage-listing of the 1950s modernist-era MLC Building at North Sydney, paving the way for its demolition. 

The $500-million plans to build North Sydney’s first net zero commercial building have been salvaged following legal proceedings after the project was blocked in a sensational move by the New South Wales government architect and Special Minister of State Don Harwin, who stepped in to support the property’s state heritage listing following a public outcry.

Investa chief executive Jonathan Callaghan maintained the existing building could not meet modern tenant expectations. 

Justice Sandra Duggan overturned the decision to heritage list the building and said there were two considerations that Minister Harwin neglected to address, which was whether listing would render the building unusable, and whether it would cause undue financial hardship. 

“By failing to take those matters into account the minister acted in breach of his obligations in a material way in connection with the making of the decision to direct the listing, and as such the decision of the minister to direct the listing of the MLC Building on the State Heritage Register was invalidly made,” Justice Duggan said.

Investa has a separate case before the court challenging the North Sydney Council’s refusal of its 2020 development application to demolish and redevelop the building. But this latest decision has added fuel to its campaign for the $500-million commercial development. 

Amended plans for the site were submitted to North Sydney Council in late December.

Urban Taskforce chief executive Tom Forrest said the overturning of the heritage-listing demonstrated the “significant gaps in the competency of the Heritage Council”.

“This decision exposes the political nature of the last-minute use of heritage listing to prevent sensible transport oriented development on the site,” Forrest said.

“These matters are fundamental to sensible decision-making. Without them, investors can be held to ransom by architects seeking to protect their own legacy without regard to the damage to the value of the site.”

The crumbling building at 105-153 Miller Street is wholly owned by the Oxford Investa Properties Partnership—one of six assets making up its $2.3-billion portfolio.

▲ Investa's plans to demolish the MLC Building and develop an A-grade office at 105-115 Miller Street have been salvaged following a legal battle over the heritage-listing of the existing building.

According to the NSW Valuer General, the land alone is valued at $57.4 million.

Ethos Urban’s revised statement of environmental effects claims a reconstruction of the ageing building would cost about $120 million and was not commercially viable.

The report said the building was past its use-by-date with complex works required, including the replacement of facade tiles, the replacement of a leaking east-west double skin facade and the replacement of the building’s plant equipment, services and elevators.

The Bates Smart & McCutcheon-designed MLC Building at North Sydney was completed in 1957 and was the first high-rise building in the area.

Ahead of its time, the building was the first to incorporate a glass curtain wall facade system, heralding the era of decentralisation of Sydney’s CBD.

It is constructed from lightweight steel, due to scarcity of materials in the post-war era.

At the time of its opening in 1957, it was the largest office building in Australia with a gross area of almost 42,000sq m across 14 storeys and a frontage of 100 metres.

The building also features bas-relief sculpture by Andor Mészáros and decorative sandstone garden sculptures by Gerald Lewers.