Mr Lee, as well as Department of Education and TAFE NSW representatives, appeared at the Tertiary Education and Skills Budget Estimates hearing on Monday and answered questions about the campus sale.

Racing NSW was reported mere hours after the morning hearing to have confirmed it had made a bid for the site above the $3.2 million it cost to build, and intended to use it as an educational facility.

Internal documents show the site has been independently valued as worth up to $3.5 million and the market valuation put the reserve at $3 million.

Courtney Houssos MLC asked Dr Lee if at his meetings to discuss "TAFE matters" with Trifalga Property Group on July 14 and Racing NSW on August 6 last year the parties had discussed the campus.

"I can't remember discussing those [matters], to be honest with you," Dr Lee said. "I could have, but I can't remember, I have many meetings, I have many [portfolios]."

She asked Dr Lee if he discussed the campus at a June 24 meeting with Stockland's group executive and chief executive of commercial property Louise Mason.

"I think from memory we were discussing... the training requirements of young people entering into the construction market, I think, but I can't remember," he said.

Ms Houssos said Dr Lee told the committee last year there were no plans to sell the site.

"You want us to expect the fact that you met with a property developer to discuss TAFE matters, you met with Racing NSW - who have previously expressed interest in this site - and none of that had an influence on your decision to sell off that premium land at Scone?" she asked.

Dr Lee said the government regularly reviewed its asset portfolio.

"The decision around Scone was certainly, was one that was put to me and was recommended by TAFE NSW," he said.

TAFE NSW managing director Steffen Faurby said the recommendation was based on its evaluation of the campus being "heavily under-utilised".

Mr Faurby said only three of the 12 buildings were used for training and only "very, very rarely".

It opened a Connected Learning Centre nearby in 2019.

Shadow Minister for TAFE and Skills Jihad Dib said the government had "given up on TAFE".

"They say it's under-utilised, but instead of actually running more courses or finding out what the problem is, they've just said 'We're going to literally give this away to someone else and we hope that they run this course'," Mr Dib said.

"If Racing NSW are the ones that are successful, then they're doing it because the government has walked away from it."

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