Merivale boss snares Sydney CBD site in $19m auction tussle
Merivale chief executive Justin Hemmes has extended his Sydney CBD pub and hospitality footprint, securing the former Barracks site at 5–7 Barrack Street for $19,000,001 after a hard-fought auction.
The 341.5sqm freehold, which carries a 1,229sqm building and sits roughly 150m from Wynyard Station, was sold with vacant possession on behalf of the Combined Services RSL sub-Branch. The property previously housed the Combined Services RSL and City Tattersalls Club, and adjoins a separate 16,300sqm Merivale-controlled site earmarked for a hospitality and mixed-use precinct.
Hemmes bid in person on the day, fighting off competition from three other qualified bidders. Two parties pushed each other in $500,000 increments before the gavel fell, with the final sale price landing one dollar above the $19 million mark.
The building offers basement and ground-floor hospitality space, plus two upper levels of commercial accommodation, and agents say the redevelopment upside was the major drawcard, drawing more than 100 inquiries in the campaign's first fortnight from developers, investors, owner-occupiers and high-net-worth buyers.
The deal was brokered by Colliers' James Cowan and Jack McGregor. Cowan, Colliers' head of NSW investment services, said the decision to take the asset to auction carried real risk but ultimately delivered for the vendor.
"We're experiencing headwinds and buyer resistance in every sales campaign, though have observed strong outcomes where there is a clear strategy," he told realcommercial.com.au.
McGregor, who is Colliers’ executive of investment services, described buyer appetite for the site as "exceptional."
"With major infrastructure investment, increasing pedestrian connectivity and significant neighbouring developments, the asset is extremely well positioned for activation and long-term growth," he said. "It will form an important part of what is becoming one of the most exciting entertainment and hospitality precincts in Sydney."
The result feeds into Merivale's broader ambitions for the precinct, with Colliers noting the group's vision extends to a city-shaping entertainment and hospitality hub across the surrounding block.
For the vendor, the sale has a clear purpose beyond the price tag. Combined RSL sub-branch president Bill Forsbey said proceeds would go directly toward veteran advocacy, compensation assistance and mental health support.
"We are a charity for veterans. That means our money goes to veterans, not into a rundown building. This sale puts $19 million to work for them," he said.
Jonathan Jackson, 25th June 2026
