The State Government has bought the former Newcastle post office building for $4.25million.
Newcastle MP and Hunter Minister Jodi McKay announced the acquisition on site this afternoon, moments after the deal was sealed.
‘‘I’m very please to say today the Newcastle post office is back in the hands of the people of Newcastle,’’ she said.
Sydney developer Sean Ngu put the property to auction yesterday.
The historic site was passed in when it failed to reach its reserve price.
The highest bidder for the property was cosmetic surgeon Dr Jerry Schwartz who offered $3.333 million.
The Schwartz family trust owns the Crowne Plaza in Newcastle, the historic Victoria Hotel in Melbourne, the Mercure Sydney Hotel, Rydges at World Square Sydney, the Macquarie Boutique Hotel Sydney and other hotels in Sydney and Canberra.
Representatives of the NSW Government were in talks with sales agents to buy the property on Wednesday night.
Those negotiations were not successful.
Ms McKay said the Government re-entered negotiations when it became apparent that another interested party, who wanted to turn the building into a nightclub, had entered discussions.
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