By JILL L’ESTRANGE

HMAS Penguin is part of the defence lands at Middle Head/Georges Heights, a protected site of national heritage. This military land was dedicated for defence purposes in 1870 as part of the strategic defence of Sydney Harbour and the Colony of NSW.

HMAS Penguin, a Commonwealth Heritage purpose-built Naval training base and hospitalisation complex built in 1940-45 and the bookend to this important historic site, is up for sale.

This is the third attempt by the Federal Government to sell defence land at Middle Head for housing. The previous attempts in 1988 and 1996 were halted due to community opposition and because Labor stalwarts Bob Carr, Tom Uren and Jack Mundey spoke out against the proposal. As Tom Uren said, “it’s utter stupidity – it really belongs to the people not only of Mosman, of Sydney but the nation as a whole… it’s our land.”

HMAS Penguin occupies 16.64 hectares from the ridgeline of Middle Head to Balmoral Oval and Beach. Critical capabilities of the site are to be retained; however, approximately 11 ha, including heritage buildings, and approximately 6 ha of ancient Angophora forest, will be divested.

More than 250 members of the public attended an information session held by the Department of Defence on Friday, 8 May 2026. The Assistant Minister for Defence, the Hon Peter Khalil MP, confirmed that the decision has already been made to divest (sale or transfer) part of the HMAS Penguin site and that the Department of Finance will handle the divestment process.

The Minister emphasised that Defence requires increased funding to provide fit-for-purpose facilities for current and future forces, with capabilities necessary to meet the strategic needs of the ADF. This comment left the audience in no doubt that HMAS Penguin will be sold for the highest price.

After all, Government employees at the meeting were handing out details for ‘Buyer Enquiries’ and the process for ‘Expressions of Interest’.

The decision to divest part of HMAS Penguin was made without consultation with the community or relevant stakeholders.  No due diligence on heritage, the environment, or contamination has been undertaken prior to this decision. The Department of Finance, now entrusted with the actual sale process, will undertake due diligence at this late stage. Unfortunately, this is after the horse has bolted!

The Minister emphasised that the site’s heritage values will be protected.  How? Once HMAS Penguin is transferred to the State or a private owner, the existing heritage and environmental protections under the Commonwealth Heritage Listing do not apply. The responsibility for protecting these values will shift to the State, and there is no guarantee they will be protected. It is most likely that the land will be rezoned by the State Government to allow luxury housing or high-rise apartments to optimise financial gain.

Although there are legislative obligations on the Government to protect the Commonwealth heritage and environmental values of the Penguin post-divestment, the Minister provided no details or assurances that these protections will be as comprehensive or as enforceable as the existing protections.

The overriding principle is that HMAS Penguin, Commonwealth Land under the custodianship of the Department of Defence, belongs to the people of Australia.

In these circumstances, the land should be transferred to the Sydney Harbour Federation Trust, an existing statutory body with an operational structure that already manages adjacent former defence lands to be held in perpetuity for all Australians.

It is inconceivable that this Government proposes to sell land that is part of the Sydney Harbour foreshore. In 2021, as noted in Hansard, there was bipartisan support to protect our harbour foreshore lands for all Australians.  Our Prime Minister, Anthony Albanese, described the Harbour as a “jewel for the entire country” – where “the egalitarian spirit is reflected by the fact that so many Australians have access to the land around Sydney Harbour”.

A public meeting to discuss saving HMAS Penguin and the Angophora Forest is being organised by HPG and Mosman Parks & Bushland on Thursday 21 May, 6.00 – 8.00pm at the Mosman Club, 719 Military Road.

We urge you to attend and show your support for keeping HMAS Penguin protected and in Commonwealth hands.

Jill L’Estrange
President
Headland Preservation Group
hpg.org.au