After a period of consolidation, trailblazing Merivale has won bidding for a former RSL site in the Sydney CBD set to complement existing ambitious plans.
The multi-level property formerly known as The Barracks at 5-7 Barrack St, previously home to the Combined Services RSL and City Tattersalls Club, resides on 342sqm, with building floorspace of 1,229sqm, close to Wynyard Station.
Street level and the basement are configured as hospitality space, below two levels of commercial accommodation.
Importantly, it is adjacent to the major CBD development for a hospitality and mixed-use precinct on King Street Merivale announced late 2024.
The Barracks freehold was held by the Combined Services RSL sub-Branch and offered to market as a vacant possession.
Sub-branch president Bill Forsbey has stated they are a charity for veterans and that their resources are intended for veterans, not “a rundown building”. All proceeds from sale of the asset are earmarked for support initiatives such as advocacy and mental health services.
Merivale CEO Justin Hemmes was one of four qualified bidders present at the auction, which saw two parties competing for the property in $500k increments.
Hemmes won the bidding battle with the final offer of $19,000,001.
Merivale operates institutional CBD venues such as ivy and The Establishment, and has spoken of major redevelopments including the 15k-plus sqm plans for King St and, separately, a tower around the ivy precinct.
Acquisition of the Barrack St site comes after a quiet period for the group, punctuated this year only by a revamp of the struggling Club Rose Bay.
Prior to that the last major move was early 2025, heralding plans for a new entertainment precinct in Melbourne, in what has been an eight-storey car park.
The group declined to comment on the Barracks acquisition at this stage.
Combined Services’ Forsbey offered the sale puts $19 million “to work” for their charges.
A campaign on the property was managed by Colliers’ James Cowan and Jack McGregor, who relay that much of the interest arose from its potential for redevelopment.
The buoyant auction marked a significant result for this kind of asset in the current market, Cowan explaining they are seeing buyer resistance in sales and that the choice to take it to auction was a “high risk … high reward” move.
