Inside the old Sydney hotel that’s changing lives

It’s an old hotel set to be redeveloped to bookend the huge $3 billion Central Place Sydney project but,inside,lives are being changed,one day at a time.

While the developer TOGA Group is waiting for the planning permissions to come through for the former post office building,later turned into an apartment hotel,they’ve opened it up as accommodation for at-risk homeless young people and refugees,mostly from Ukraine.

The former Adina Apartment Hotel,Sydney Central will be used as temporary housing before being redeveloped.

The former Adina Apartment Hotel,Sydney Central will be used as temporary housing before being redeveloped.Supplied

“When these people first come in,you can see how shy and nervous they are,” said Kat Brown,who works in the not-for-profit clothing store Thread Together on the hotel’s ground floor,and who has experienced homelessness herself with her 12-year-old son when she was fleeing from domestic violence.

“But when they see this place and realise they’re going to have a secure roof over their heads,support to get them back on their feet and new clothes to help them on their journey,you can see the change happening before your very eyes. It’s wonderful.”

The initiative at the former Adina Apartment Hotel on Lee Street next to Central Station has been launched by its owner TOGA Group,alongside Atlassian and Dexus,who have all joined forces with My Foundations Youth Housing (MFYH) to provide the affordable housing for around 80 people at the emerging tech precinct around the station.

When they’re given the go-ahead,the building will be redeveloped by into a mixed-use project with office space,a hotel,and a ground level food and beverage offering,next to the Atlassian HQ.

Kat Brown has experienced homelessness herself and is now helping others.

Kat Brown has experienced homelessness herself and is now helping others.Wolter Peeters

TOGA managing director Allan Vidor says in a situation of so much homelessness and a building standing empty for perhaps around two years,it made sense to offer it to the community.

“I’ve heard stories first-hand from people in these circumstances,and they moved me,” he said. “So this is the right thing to do. And the more developers and property owners with real estate standing idle who are able to do something like this,the better.”

Atlassian’s co-founders,Mike Cannon-Brookes and Scott Farquhar,are known for their personal real estate purchases. Cannon-Brookeshas amassed a portfolio worth about $290 million,while Farquhar recentlybought Uig Lodge in Point Piper for $130 million and also owns the $71 million Elaine estate.

The call for governments to become more involved in matching empty real estate and homeless people is being echoed by Rebecca Mullins,CEO of MFYH,which is running the Central Project. Residents pay 35 to 50 per cent of lower-than-market rents at the hotel TOGA has leased to the not-for-profit on a $1 contract.

“The need at the moment is huge,and we could fill the hotel three times over,” Mullins said. “It’s a wonderful project with quality housing to give people enough time to engage with support,build some income,set goals and have another chance in life.

“But it would be good for the State government to remove some of the impediments to projects like these,and incentivise more property owners to take part,by removing some of the costs. For instance,the developer here is still having to pay land tax.

“He’s happy to do it – God bless him – but we need to help others to do this,while working on more permanent housing solutions.”

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correction

A previous version of this story said the developer was making no income. In fact,Atlassian and Dexus are providing TOGA with compensation for use of the hotel.

Sue Williams is a property writer and columnist.

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