RBA’s horror $ 1 billion black hole – realestate.com.au

It seems that the organization responsible for managing Australia’s finances, and yours, is not so good at managing money for yourself.

The reserve Bank of Australia that apart from determining what interest you pay on your mortgage is also charged with “guaranteeing economic prosperity and the well -being of the Australian people”.

But they have just dug a $ 1 billion black hole for themselves.

According to the Australian Financial Review, the costs for renovating the RBA headquarters in the Martin Place in the CBD from a first figure of approximately $ 260 million to one of the approximately $ 1.2 billion in tax money.

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The RBA building in Martin Place is confronted with a huge renovation. Photo: NCA Newswire / Simon Bullard

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Those figures put it on one of the most expensive renovations in Australia in history.

For comparison: the renovation costs of the founder of the Menulog founder Leon Kamenev’s Sydney Waterfront -As, which combined three different locations and is one of the most expensive houses in Australia, was around $ 35 million.

Despite the enormous new costs of redevelopment in the midst of calls to control government spending, the RBA is full of its plans.

“After careful analysis of all available options, the RBA has established that maintaining ownership and the execution of a complete remediation and renovation is the most controlled and cost -effective long -term solution,” ” Said the central bank.

The 22 -storey building on 65 Martin Place, Sydney dates from 1962.

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Most employees of the banks, including RBA governor Michele Bullock, work from the Martin Place Office. Photo: John Feder/The Australian

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When the renovation project was announced in 2019: the aim was to ensure that the building would be “structural, functional and operational viable in the long term”.

Regarding the building itself: “It is a unique building on the basis of its heritage value, but also the very safe function supported by an armed security force, specially built bank vessels, a data center with national payment infrastructure and valuable archives,” the bank said.

“The majority of the RBA staff (1,230 or 90 percent of the current 1,371 employees of the RBA, including RBA governor Michelle Bullock) and important functions work from the head office building.”

When applying for money from the government for redevelopment, the RBA said that the renovation was necessary because the building lags behind compliance and sustainability standards.

The decision was made to stay at Martin places due to the claimed low costs and because “some of the highly specialized functions of the bank have been integrated into the building [mentioned above] Costs would be priceless to move and replicate in another building. “

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The RBA building with temporary screens around it. Photo: Rohan Kelly

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Other options that were not decided were, among other things, selling the building and lending the building and selling the building and leasing elsewhere in the Sydney CBD and selling and buying another real estate in the Sydney CBD.

According to the RBA, the enormous costs are blown out due to the number of asbestos found in the building.

“First works showed that the building contains four to five times more asbestos than usually in buildings from its era,” the RBA said in a statement.

“The extent of this contamination, which was only fully appreciated in 2023, requires that the building is returned to its steel frame to guarantee safe and complete removal.

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The building dates from the sixties. Photo: NCA Newswire / Simon Bullard

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“In addition to the problem of the asbestos, the current building structure does not meet the construction codes, energy is inefficient and no longer fits for the goal.”

The completion of the renovations was estimated for the first time on October with a capital construction costs of $ 244.6 million.

The building is now only planned to at least 2029.

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