Justin Hemmes buys vacant RSL
Justin Hemmes has bought a Sydney CBD freehold opposite one of its flagship hospitality precincts, continuing a consolidation play around Barrack and George streets.
Via Merivale, the hospitality executive paid $19,000,001 at auction for the four-level building at 5-7 Barrack Street.
Zoned SP5 Metropolitan Centre it spans 342 square metres.
The 1229 sqm building, predominantly hospitality, with offices, was offered vacant.
It was last occupied by the City of Tattersalls club and historically by the RSL, also the vendor.
Mr Hemmes bid in person.
Colliers’ James Cowan and Jack McGregor were the agents.
“The campaign generated strong momentum from launch, recording more than 100 enquiries within the first two weeks and attracting a broad mix of investors, owner-occupiers, developers and high net worth private buyers from across the country,” they said.
“Four qualified bidders attended…with two parties competing aggressively in $500,000 increments as momentum quickly built under the hammer,” they added.
Hemmes expands footprint
The property neighbours Merivale’s proposed Kings Green hospitality precinct, a c16,300 sqm mixed-use entertainment hub spanning several heritage buildings bounded by King, York, Clarence and Barrack streets – incorporating a site bought for c$200m in 2022.
Approved by the City of Sydney, with interconnected restaurants, bars, a sports bar, nightclub, boutique hotel, wellness facilities and premium office space, it will contain 16,300 sqm anchored by Merivale’s Hotel CBD at 75 York Street, held since 1995 (continues below).
The Barrack St site allows for a 60 metre building and an 8:1 floor space ratio.
“An auction process was considered to be a high risk, potential high reward strategy that delivered upmost transparency in a complex market landscape,” the agents said.
“We couldn’t be happier with the result for all involved,” they added.
“We saw exceptional interest from a broad range of buyers from the outset, which speaks to the quality of the opportunity and its location within a tightly held and rapidly evolving precinct,” according to the executives.
“With major infrastructure investment, increasing pedestrian connectivity and significant neighbouring developments, the asset is extremely well positioned for activation and long-term growth.
“It will form an important part of what is becoming one of the most exciting entertainment and hospitality precincts in Sydney”.
The RSL will tip proceeds into, amongst other things, advocacy and compensation assistance, mental health and wellbeing support, employment and for sport and recreation related projects
“We are a charity for veterans,” Sub-Branch president, Bill Forsbey, said.
“That means our money goes to veterans, not into a rundown building,” he added.
“This sale puts $19 million to work for them,” according Mr Forsbey.
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