This story on the renovation problems facing the RBA with its headquarters in Sydney is a cracker. Billions of dollars in overrun. Extensive asbestos, outdated infrastructure, a full house of problems with a $1billion + bill.
So I wonder...
What is the status of the rest of Sydney's major office buildings ? If/when they need to be looked at for upgrades/renovations/whatever what will the owners discover ? How will the balance sheets of many, many companies sit if their blue chip property portfolio holds a stack of syphilitic white elephants ? Should investors know the status of these assets ?
When will Auditors require this information to fully inform investors for public account purposes ?
The challenges facing the RBA are public. The problems that will face the owners of the rest of the infra structure could be just as dire.
Four-year, billion-dollar blowout as RBA's horror renovation uncovers asbestos, cracks and death-trap lifts
By business reporter
Daniel Ziffer
Posted 10h ago10 hours ago, updated 9h ago9 hours ago
The Reserve Bank of Australia's head office in Martin Place, Sydney, is undergoing renovation. So far it is costing four times the original estimate and will take four years longer than anticipated.(ABC News: John Gunn)
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- In short: Australia's most expensive office renovation is underway at the Reserve Bank's headquarters in Martin Place, Sydney. They've found "four to five times" more dangerous asbestos than in similar-aged buildings.
- The cost of the project has blown out to almost $1.1 billion and staff won't return to the building until 2029.
- What's next? A report by the federal parliament's Public Works Committee will soon give more detail of the rising costs.
Riddled with asbestos. Almost 290 per cent over budget. More than four years late.
Renovating the Reserve Bank of Australia's (RBA) headquarters is increasingly looking like a disastrous episode of home-building show Grand Designs.
The key difference? The budget for the horror reno is now north of $1 billion.
Documents obtained using the
Freedom of Information (FOI) process detail the difficulty and unexpected expense of renovating the central bank's flagship office at 65 Martin Place in Sydney, built in 1964.
The Reserve Bank's flagship office in Martin Place has been surrounded by cladding and construction hoardings for years. It will be around five more years until they're expected to come down.(ABC News: Daniel Irvine)
The project has become so complex and expensive, the central bank considered selling the iconic heritage-listed building and moving elsewhere.
Instead it has rented space for staff nearby and is wearing the extra costs.
As a previously unseen presentation dryly notes:
"Additional cost of $823.3M. New total costs of $1,089.9M. Extends delivery time by 4 years to November 2029."
Four-year delay
Cracks and water leakage are just the start.
With "failing infrastructure" and "non-compliances" — failure to be up to legal safety standards — in parts of the building, there had to be an upgrade or a move for the 1,439 staff of the bank who work from its headquarters.
Renovating the Reserve Bank's headquarters is increasingly looking like a disastrous episode of home building show Grand Designs. The key difference? The budget for the horror reno is now north of $1 billion.