Calls for inquiry after former Gundagai Hospital site value jumps 500 per cent

An old hospital site in southern New South Wales has sold for the second time in a year — for a 500 percent profit.

The NSW health department sold the old Gundagai hospital in early 2015, after building an new hospital next door.

Contracts have now settled for the old hospital’s next sale, to a Sydney doctor, for $650,000.

NSW Upper House MP Mick Veitch, who was born in the old Gundagai hospital, was astounded when he heard the price.

“Well, I’m gobsmacked. Congratulations to the person who bought it for $110,000 and was able to turn it around for so much money in such a short time,” Mr Veitch said.

“At the time, I was concerned that the old site sold for significantly below what I thought was the market value. And this new sale shows my views were justified.”

“There does need to be some investigation as to why the difference in the price.”

Gundagai community leaders shared Mr Veitch’s concerns about the original sale.

Elders real estate principal Jim Saunderson said the latest sale was embarrassing.

Gundagai GP Paul Mara says it was further evidence of the need for a public inquiry.

“How did the health department arrive at that sale price of $110,000, only for it to be sold for so much just a year later?” Dr Mara said.

In 2014, a Gundagai community group opted not to bid for the hospital, because they could not raise enough money to meet the listed price.

They were outraged when they learned the State Government then sold it for significantly lower than the listed price.

Mr Veitch said records obtained under the Government Information (Public Access) Act 2009 showed NSW Health was concerned about the cost of asbestos remediation.

“And that’s part of the reason the health bureaucrats at the time let the building go for the price they did,” Mr Veitch said.

New owner considers plans for refugee support

The new owner, Sydney general practitioner Nirmal Taluja, said the site was listed for $1.5million, but she negotiated for $650,000.

According to her practice website, Dr Taluja has 40 years’ medical experience, including as head doctor at Sydney’s Auburn Hospital.

“What I’m thinking is why don’t I make an establishment centre to help refugees?” she said.

“The government can achieve so much out of that if you do a settlement commission where the people can start, and the government can give them incentives rather than unemployment benefits.”

She said the centre would teach refugees how to farm, before assigning them some land to look after.

“Of course I have to do a lot of work for it. I’d like to have Australia do something for these refugees, but we have some gain out of it,” Dr Taluja said.

She said it was one of three options she was considering.

The others were a boarding house for homeless people, and a palliative care centre.

“Gundagai is beautiful. I would love to retire there myself,” Dr Taluja said.

“Whatever is proposed for the site isn’t as important now as what will happen about the remediation of that building and that site,” Mr Veitch said.

“There are asbestos issues, and we need to make sure the remediation is done properly.”

Dr Taluja said she would now approach government and community groups for assistance realising one of her plans.

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