3 weeks ago
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Australian billionaire Justin Hemmes' hospitality empire Merivale has tightened its grip on the Sydney CBD, snapping up a landmark Martin Place site in a $19 million deal.
The sale clears the way for another key piece of Hemmes' ambitious Kings Green overhaul, with the former Combined Services RSL sub-Branch building — known locally as the Barracks on Barrack — sold after two years of planning.
For Hemmes, the acquisition strengthens his expanding CBD footprint as part of the broader business strategy, which is transforming multiple heritage buildings into a high-end dining, hotel and entertainment precinct.
The site now becomes a strategic addition to the company's sweeping Kings Green precinct vision — a multi-block redevelopment spanning King, York, Clarence and Barrack Streets.
The vision is to create an interconnected precinct featuring dining venues, bars, a boutique hotel and premium office space.
Justin Hemmes' hospitality empire Merivale has tightened its grip on the Sydney CBD, snapping up a landmark Martin Place site in a $19 million deal. Pictured with girlfriend Madeline Holtznagel
The sale clears the way for another key piece of Hemmes' ambitious Kings Green overhaul, with the former Combined Services RSL sub-Branch building sold after two years of planning
For Hemmes, the acquisition strengthens his expanding CBD footprint as part of the broader business strategy, which is transforming multiple heritage buildings into a high-end dining, hotel and entertainment precinct
It follows the company’s purchase of the core Kings Green site for about $200 million in 2022 and the unveiling of its development plans in 2024.
Sub-Branch president Bill Forsbey said the outcome ultimately strengthens the organisation's long-term mission.
'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.
The Barrack Street property had become increasingly difficult to maintain, with its most recent tenant falling behind on rent before their lease was terminated.
Significant repairs were also required, adding pressure to the organisation's decision-making.
Meanwhile, as Merivale's business expansion continues, owner Justin Hemmes is also growing his personal empire.
Last month, Hemmes and his partner Madeline Holtznagel snatched up a glorious A-list seafront property in Byron Bay.
The hospitality mogul spent a reported $18 million on the secluded spread, which was last sold in 1998 for $875,000.
The site now becomes a strategic addition to the company's sweeping Kings Green precinct vision
The vision is to create an interconnected precinct featuring dining venues, bars, a boutique hotel and premium office space
Situated just 1 km from Byron Bay at Belongil Beach, the sprawling estate covers 1,580.3 sq m and hosts a two-storey four-bedroom, four-bathroom 'shack'.
The hospitality giant previously acquired the wider Kings Green site for around $200 million in 2022, with development plans formally unveiled in 2024.
The business mogul, who has a net worth of $1.39 billion, began dating model Madeline Holtznagel in 2019 when she was 22 and he was 47 after his split from Kate Fowler in 2018.
Madeline is the younger sister of fellow Aussie model Simone Holtznagel, who welcomed her first child, a daughter called Gia, in March 2024 with her now-ex-boyfriend Jono Castano.
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