Merivale secures Barrack Street freehold for $19m
Merivale founder Justin Hemmes has expanded his Sydney footprint by acquiring the freehold at 5-7 Barrack Street for $19 million.
The company unveiled a master plan for a new CBD hospitality precinct in October 2024, spanning heritage buildings between King, York, Clarence and Barrack streets.
“We are setting out on a mission to transform the separate spaces of these incredible buildings into a combined, licensed precinct that will facilitate quality and accessible entertainment, food, beverage and accommodation options,” Hemmes said at the time.
The multilevel freehold, sold with vacant possession, was secured at a fiercely contested public auction that attracted more than 100 enquiries during the campaign, with four qualified bidders competing under the hammer. Two parties, including Hemmes, drove the price higher in $500,000 increments before the gavel fell at $19 million.
Located just metres from Wynyard Station and within walking distance of Barangaroo and Martin Place, the property sits immediately adjacent to Merivale’s proposed 16,300-square-metre hospitality and mixed-use development, making the acquisition a logical extension of the group’s broader city-shaping ambitions.
“An auction process was considered to be a high-risk, potential high-reward strategy that delivered utmost transparency in a complex market landscape. We couldn’t be happier with the result for all involved,” said James Cowan, Colliers’ head of NSW investment services.
“We’re experiencing headwinds and buyer resistance in every sales campaign, though have observed strong outcomes where there is a clear strategy, a structured process, and the right agency team in place.”
Sydney’s western CBD has been cited as one of the city’s evolving precincts, thanks to major government infrastructure investment, improved pedestrian connectivity and growing demand for premium food, beverage and entertainment experiences.
“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,” said Jack McGregor, Colliers executive of investment services.
“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.”
While the transaction represents another strategic acquisition for Merivale, it also delivers a significant outcome for the vendor.
Combined Services RSL sub-Branch, which owned the Barrack Street property, said selling the ageing building would allow it to unlock $19 million to expand services for veterans, including mental health support, advocacy and employment assistance.
