The Greek Community of Melbourne (GCM) has taken legal action against the state government, seeking to more than double the compensation it received for land acquired as part of the North East Link project. The community is pushing for a total payout of $27.91 million.
The 61,080-square-metre site in Bulleen, formerly home to the Hoyts Drive-In, was compulsorily acquired by Victoria’s Department of Transport and Planning in 2021 for the multibillion-dollar toll road project, now expected to cost $26 billion and open in 2028.
GCM had long intended to develop the land, originally purchased over 30 years ago, into a community hub featuring aged care facilities, educational spaces, a gallery, function areas, and sporting grounds—though parts of the site are prone to flooding. The community had also planned to sell a section of the land for residential development, expecting to generate up to $11 million from the sale.
However, with the state government’s acquisition, those plans were derailed. The Valuer General assessed the entire property at $11.45 million, and the department ultimately paid the community $11.48 million. But GOCMV, relying on a valuation from M3 Property, argues the land is worth significantly more—$26.5 million—and has now taken its case to the Supreme Court, represented by law firm Rigby Cooke.
The claim includes the value of the land, legal fees, and associated costs. Although only about 35 per cent of the site is considered suitable for development, M3 Property determined its worth by comparing similar land sales. Their assessment suggests the property could have supported a mix of residential and commercial developments.
GCM’s broader property holdings include the Greek Centre on Lonsdale Street, the Alphington Grammar School, and several churches collectively valued at over $110 million, according to its 2023 annual report. The community’s rental income has fallen from $1 million pre-pandemic to $775,000 annually.
GCM President Bill Papastergiadis acknowledged the loss of the Bulleen project when the acquisition was finalised, but had expressed hope that the funds received would benefit the community long-term.
GCM is not alone in challenging land acquisitions for the North East Link. Last year, Boroondara City Council also launched a Supreme Court case against the state, contesting the $29 million compensation it received for 23 tennis courts. The council is seeking to have its payout increased to $64 million.
A spokesperson for Major Road Projects Victoria stated that compensation for the Bulleen site was based on independent assessments by the Valuer General.
“The land in Bulleen is critical for a new major interchange connecting the Eastern Freeway to the North East Link tunnels, which will remove 15,000 trucks from local roads,” the spokesperson said. ”
As this matter is before the courts, it would be inappropriate to comment further.”
The North East Link, originally estimated to cost $10 billion, has undergone multiple budget revisions, with its price tag now at $26 billion.
