Merivale completes $19m Barrack Street RSL purchase after members stripped of voting rights

Justin Hemmes' Merivale Group settled its $19 million purchase of the Barrack Street building formerly occupied by the Combined Services RSL sub-branch on Tuesday, weeks early, after RSL NSW stripped dozens of members of voting rights amid branch-stacking claims.

Justin Hemmes' Merivale Group on Tuesday completed its purchase of the Barrack Street building formerly occupied by the Combined Services RSL sub-branch for $19 million.

The sale settled weeks before the planned settlement date, after RSL NSW stripped dozens of members of their voting rights amid claims of branch stacking. The CBD branch of the peak veterans group outmanoeuvred its own members to sell their building to the pub tsar. Hemmes' purchase fills in the missing piece of his entertainment precinct in the western CBD, where he already owns adjacent properties.

Veterans Outraged Over Branch Stacking Allegations

The branch-stacking allegations have outraged veterans who joined the branch in the past 14 months. Many served recently and claim they were courted by RSL NSW to revitalise the organisation, only to have their integrity called into question. They wanted the branch to retain the building, which is centrally located close to their city offices and the Martin Place cenotaph.

RSL NSW chief executive Mick Frewen said the sale gave the sub-branch the opportunity to secure modern premises in the CBD while putting millions of dollars towards supporting veterans and their families. It turns an unsuitable asset into something that can make an immediate and lasting difference to veterans, Frewen said. The property fills in the missing piece of Hemmes' plans to develop an entertainment precinct in the western CBD.

Its purchase represents the second time he has capitalised on the financial woes of an RSL sub-branch sitting on prime real estate. Last year he secured the rights to manage a hospitality business on the waterfront at Rose Bay, where the local RSL had fallen into voluntary administration, after negotiating a profit-sharing agreement with the club.

Sources not authorised to speak publicly confirmed Hemmes has sounded out similar arrangements at asset-rich clubs Palm Beach RSL and North Bondi RSL, though neither club was interested. Just a lick of paint. We just settled on this property in Sydney CBD (just in time for the latest rate rise), Hemmes posted on his personal Instagram account. It is the old RSL on Barrack st and was originally accomodation for return soldiers.

Controversial Vote Raises Questions About Sale Process

And so begins the journey for its next chapter in life. Combined Services RSL members voted in favour of selling 5-7 Barrack Street to Merivale in March. But some members later claimed the vote had been deliberately held at a time veterans of working age would not be able to attend and without proxy or online voting being made available.

At a general meeting in July, members turned up in strength to sabotage the completion of the sale by voting against the RSL custodian being appointed among the trustees, which was a condition of the sale contract. RSL NSW held a second vote earlier this month, and again the members voted down the pre-sale condition.

Two weeks later, the board of RSL NSW announced it was transferring the memberships of people who had joined the branch after July 2025 to an unattached list. This meant they no longer had any rights attached to the Combined Services RSL sub-branch, while it investigated possible branch stacking. On Friday, the board informed those members that their transfer out of Combined Services RSL was confirmed.

They were no longer eligible to attend the next meeting, where a vote would be held on the sale contract. One affected veteran claimed in a letter to the state secretary that questioning the legitimacy of their membership was a slight on his character and had caused distress to many veterans. We chose this sub-branch as our home, he wrote. We legitimately joined as first time members of the RSL, despite generational antipathy towards the organisation, in good faith.

Members Defend Diversity And Validity Of New Joiners

The people who have recently joined bring vast networks, skills and diversity to the organisation, yet you are pushing them away and questioning their validity. Another Combined Services RSL member, Nikhita Sahay, said she had encouraged her fellow veterans to join and membership had grown through word of mouth. She acknowledged that some had joined after details of the Barrack Street sale became public.

I do not think veterans joining because they have seen the underlying value of the asset is a bad thing, Sahay said. They are veterans who have served, who have seen the strategic value of the building, and they prize it. RSL NSW said the branch-stacking investigation was not related to the sale of Barrack Street.

Board Approves Sale Despite Unmet Pre Sale Condition

The board decided to approve the sale without the pre-sale condition being met, after the trustees provided them with a deed that ensured the proceeds would remain in trust until the RSL custodian was appointed, a spokesman said. Ultimately, the proceeds of the sale would flow to the Combined Services sub-branch.

The sale will allow the Combined Services RSL sub-branch to turn an ageing, rundown, and unsuitable property into a significant long-term and sustainable investment to support veterans and their families, the spokesman said.

Compiled from 3 sourcesCompiled by HeadTopics editors by cross-checking the verified news reports listed here.

smh theage:RSL members in uproar after Hemmes snaps up city premises brisbanetimes:RSL members in uproar after Hemmes snaps up city premises

This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.

Merivale Group Combined Services RSL Barrack Street Sale Branch Stacking Merivale Barrack Street Purchase RSL NSW Branch Stacking Justin Hemmes Sydney CBD Combined Services RSL Sale Veterans Voting Rights

Australia Latest News, Australia Headlines

Similar News: You can also read news stories similar to this one that we have collected from other news sources.

ASX flat ahead of RBA call as Wall Street falls on record bond yieldsThe Australian sharemarket is set for a cautious start on RBA day as economists predict a quarter-point rate hike to 4.6 per cent, while Wall Street slipped as 10-year Treasury yields hit 5.23 per cent, their highest since 2007.
Read more »

ASX to open flat ahead of RBA rate call; Wall Street wobbles as bonds spikeThe Australian sharemarket is set for a cautious start on RBA day, with investors looking to the Reserve Bank’s press conference after its expected rise in interest rates for clues on whether a follow-up hike will be needed.
Read more »

AI Stocks Swing Wildly as Wall Street Sentiment Shifts From Safety Fears to Muse OptimismWall Street swung between fears of an AI development slowdown and excitement over Meta's Muse assistant, sending hundreds of billions of dollars out of and back into AI-exposed stocks in two weeks.
Read more »