Justin Hemmes’ multi-million dollar expansion hits roadblock as row breaks out over ambitious plan in Sydney CBD

Sydneysiders have slammed Justin Hemmes’ plans to create a 24/7 entertainment and hotel precinct after he spent millions of dollars buying properties in the CBD.

Papers filed with the City of Sydney last month show Mr Hemmes’ company, Merivale, plans to transform six office and apartment buildings in King, Clarence and York streets.

His proposal includes a hotel, an underground nightclub, a jazz club, a supper club, a restaurant, a cafe, a sports bar, a spa, a gym, a lounge, a courtyard and offices.

Almost all six land titles included in the plan were purchased by JH CLARENCE #2, a company registered in May 2022 with Mr. Hemmes as director, the Sydney Morning Herald reported.

The submission of Mr Hemmes’ draft development application (DA), which precedes specific DAs for each site, sparked enormous resistance from the small number of residents and business owners who refused to sell to him.

Many believe that if his plans are approved, they will be driven away by increasing noise and ‘chaos’.

One of the residents opposing the billionaire is Jerry Chen, a financial executive and the sole owner of the landmark apartments at 104–118 Clarence Street that has refused to sell to Mr. Hemmes.

He and other short-term residents of the block are concerned that Merivale’s majority representation in the building’s strata could see them evicted at a moment’s notice.

They have lodged objections to the DA proposal with the City of Sydney, citing their anger at the potential removal of homes during a housing crisis.

“Mixed-use residential areas are essential to creating vibrant, sustainable communities,” their objection said.

‘By transforming this site into an exclusive commercial and entertainment-oriented area, the proposal undermines the social fabric of the area and contributes to the erosion of livable, balanced urban environments.’

Several entrepreneurs have also objected to Mr Hemmes’ proposal.

John and Anna Arcidiacono, who own offices on a neighboring block, told the council that the district attorney had included use of the parking spaces they own.

“We have a number of concerns about the proposal, including that it proposes the use of land we own,” Anna Arcidiacono wrote.

‘We have not given the owners permission for the application.

“The proposal to council includes the proposed use of our parking lot… but the proponent has no right or agreement to use that area at all, and the space is required for our use.”

Mr. Hemmes (pictured with partner Madeline Holtznagel) poured tens of millions of dollars into the DA’s office for King, Clarence and York streets

The block in Mr Hemmes’ is one of Sydney’s four accredited Purple Flag precincts – a global plan that recognizes areas with a balanced and diverse nightlife, including entertainment and restaurants.

Mr Chen, who has lived in the CBD for almost a decade, believes the introduction of the billionaire’s proposed nightlife would tip the balance and see residents pushed out of the block.

Of particular concern to residents is the potential noise from the proposed 24/7 underground nightclub.

“If you have a nightclub that’s open 24 hours a day, 7 days a week, imagine the chaos, the commotion and the noise,” he told the outlet.

“We understand that the city is a mixed-use zone. There are specific zones for this [entertainment] on George Street. There are enough nightclubs in the city to suit everyone’s interests.’

Mr. Chen described residents’ objections to Mr. Hemmes’ plan as a “David versus Goliath battle.”

Sue Cato, a corporate communications specialist appointed by Merivale, told SMH that the company had undergone an “extensive consultation process” before filing the DA.

The City of Sydney will consider the proposal next year.

Daily Mail Australia contacted Merivale for further comment.