July 22, 2026 — 6:07pmJustin Hemmes’ $19 million purchase of a former Tattersalls Club building is in doubt after RSL members used a bureaucratic process to block the sale from proceeding, throwing into disarray his plans for a hospitality precinct at the base of Martin Place.Members of the Combined Services RSL sub-branch, whose trustees hold the title to the Barrack Street property, voted on Tuesday against the RSL custodian being appointed among the trustees to handle the proceeds of the sale, which was a precondition to the transaction proceeding.Justin Hemmes and the Barrack Street property in Sydney’s CBD.Artwork: Matt WillisSub-branch member Nikhita Sahay said the building was the last RSL property in Sydney’s CBD and veterans did not want to see it disappear in a “flash sale”.“Once it’s lost, it’s gone forever,” Sahay said.“It’s valuable to veterans of all generations because of its historical significance, and its location close to the Martin Place cenotaph and defence establishment precincts gives it strategic relevance.”But RSL NSW has insisted that the sale will proceed, and declared that the sub-branch was now in breach of its governance obligations. This “governance issue” would be considered at the next board meeting.Merivale’s Hemmes want the property to form part of a nightclub, restaurant, bar and hotel precinct in the western CBD.Dominic Lorrimer“A group of members voted against the custodian arrangement in the mistaken belief that a ‘no’ vote would stop the sale,” the spokesman said.“It cannot. The sub-branch and the purchaser contracted for the sale, and the sub-branch members and the RSL NSW Board approved it.”Hemmes declined to comment on how the turbulence might affect his plans for a nightclub, restaurant, bar and hotel precinct in the western CBD, where he already owns the adjacent properties to the RSL’s building. He turned up in person to bid for the 341.5-square-metre property in May, and bought it for $19,000,001, a single dollar higher than the reserve.The dispute comes as the administrator for the City Tattersalls Club, which occupied the building until last year, announced that two of its other venues – the Castlereagh Club, World Gym and squash courts – were closed effectively immediately due to the “dire financial position” of the 130-year-old gentleman’s club.Administrator PKF told City Tattersalls members on Wednesday it would also apply to the NSW Supreme Court for instructions on how to wind up the club as it was an unincorporated association.A general meeting of the Combined Services RSL sub-branch was told in June that Tattersalls owed them nearly $300,000. Treasurer Alexander Ekert told the meeting that the sub-branch’s trustees terminated the lease with Tattersalls after discovering “significant issues” with the agreement.“The lease was not being [administered] in accordance with the terms, rent was not being charged at the appropriate rate, outstanding debts were accumulating and financial obligations were not being met,” Ekert told sub-branch members.The trustees also learnt that the building and all the RSL memorabilia contained in it were not insured. After reviewing the overall situation, the trustees decided that the best option was to sell the club, Ekert said.Sub-branch members voted 12-9 in favour of selling the building at a general meeting in March. However, some members claimed that they were not in favour of the sale but had not been able to vote as the meeting was scheduled on a workday and proxy or online voting were not available. They also claimed that a staff member who voted in favour of the sale was not eligible.They learnt later that the sale was conditional on RSL Custodian being appointed as trustee and raised that matter with RSL NSW lawyers, after which a motion to appoint the custodian was added to the July 21 meeting agenda.Members voted 18-16 against the motion, and two other motions that presupposed the sale going ahead were then dropped from the agenda. The meeting was told that the board would have to consider its next steps.Combined Services RSL sub-branch president Bill Forsbey said the executive wanted to sell the Barrack Street property and move to another location in central Sydney.“We are a charity for veterans. That means our money goes to veterans, not into a rundown building,” Forsbey said.“For too long our sub-branch has been an office on the second floor of a tired old building. We want somewhere veterans can drop in, somewhere modern, warm, and welcoming, somewhere that feels like ours. If you served, we are here.”More:Commercial real estateFor subscribersJustin HemmesNight-time economyMerivaleFrom our partners