Balmain Leagues Club worth more than $70m

Balmain Leagues Club site on the market worth more than $70m
Date
November 5, 2014 - 8:17AM

For sale: Balmain Leagues Club. Photo: Danielle Smith
The Balmain Leagues Club, former home of the Wests Tigers, will enter the next phase of its colourful life, after the owner has put the freehold property up for sale, worth more than $70 million.

It is expected any buyer would seek to redevelop the site into mixed use, with apartments and retail space underneath.

The sales agents, Michael Andrews and Scott Gray Spencer of CBRE, said a heads of agreement was in place that would allow the West Tigers club to return to its spiritual home.


The West Tigers club could return to its spiritual home. Photo: Brendan Esposito.
“With the Sydney apartment market experiencing an under supply of new dwellings, this property, by virtue of its location, creates a core opportunity to deliver on these demands,” the agents said.

The vendor, Rozelle Village’s sole director Ian Wright, said the company was now focused on other developments outside Australia.

“Also…we have a strong affiliation with the Tigers and feel that the time is right for a fresh approach to the land’s development,” Mr Wright said.

The site had “continuously” attracted interest from prospective buyers, he said, “so we’re expecting a strong response to the expressions of interest”.

Rozelle Village, originally half-owned by former Tigers’ hooker Ben Elias, bought the financially embattled club’s headquarters for $1 in 2009 in return for taking over its debts of $23.5 million.

The company’s most recent high-rise plans, which included residential towers at 24 and 20 storeys plus a new home for the club, were knocked back by planning authorities in April.

Leichhardt mayor Rochelle Porteous said council, which was working on new planning controls for the site, would welcome working collaboratively with a new owner.

“It’s important that any potential purchaser for the Rozelle site is made aware of the history of the site and is made aware of the fact that the current site-specific [Local Environment Plan] on the site does not work,” Cr Porteous said.

A sale would not cut all ties between Rozelle Village and the club, which will still owe the company about $11 million.

Issues surrounding the debt came to a head in March this year when club sought an injunction to stop any bid to place it into receivership.

According the terms of settlement in that dispute, which were signed in August, the club’s right to lease premises at the site may be terminated if development consent is not granted by a “sunset date” of November 29, next year.

The new deed also requires the club to support the site’s owner in negotiations and lobbying of council, the state government and community in relation to any future development application, which may include a smaller club premises than that set out in the original agreement.

The club’s spokesman, Danny Munk, said that the club was aware of discussions about the sale. “That’s the only comment I can make,” he said.
The expression of interest campaign closes in December.

Read more: http://www.smh.com.au/business/property/balmain-leagues-club-site-on-the-market-worth-more-than-70m

Was obvious this bloke couldn’t hold onto the site and bleed money forever.

Lets just hope something can be salvaged from all this mess, although it appears too little too late re. the Leagues Club, considering Balmain’s debts to the NRL need to be paid back in less than a year’s time.

Triguboff a chance?

It’s clear the Balmain side have failed miserably in their business dealings with this site.

I personally don’t care if they fail to repay the NRL in time…they should wear the consequences of their inept business decisions and management.

The WT don’t need this level of incompetence dragging the club down moving forward

The only winners in this were those with excellent business acumen supported by strong lawyers…Our mob probably used legal aid apprentices.

Sounds like they need a miracle.

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with property prices booming in Sydney they should get some good dough for that site.
I take it they still hold onto the poker machine licences as well?

If they do get over $70m for the site and $10m for the pokies licences. after paying off their debts they should put the rest in bank. With the interest they could support West Tigers and Balmain juniors handsomely.

@alexaki:

It’s clear the Balmain side have failed miserably in their business dealings with this site.

I personally don’t care if they fail to repay the NRL in time…they should wear the consequences of their inept business decisions and management.

The WT don’t need this level of incompetence dragging the club down moving forward

The only winners in this were those with excellent business acumen supported by strong lawyers…Our mob probably used legal aid apprentices.

No it’s not clear at all, it’s the subjective view of someone who clearly doesn’t understand the background or chooses not to.

@Tigerdon:

with property prices booming in Sydney they should get some good dough for that site.
I take it they still hold onto the poker machine licences as well?

If they do get over $70m for the site and $10m for the pokies licences. after paying off their debts they should put the rest in bank. With the interest they could support West Tigers and Balmain juniors handsomely.

Well the Leagues club doesn’t own the site, it has the right to put a club in but any sale is welcome news from that perspective. Presumably they could sell Five Dock and keep Flemington which I understand is highly profitable. Plus some forward progress would assist in getting loans while Rozelle came back online. Early days yes but the most promising news for a long time.

@Tigerdon:


Rozelle Village, originally half-owned by former Tigers’ hooker Ben Elias, bought the financially embattled club’s headquarters for $1 in 2009 in return for taking over its debts of $23.5 million.

A sale would not cut all ties between Rozelle Village and the club, which will still owe the company about $11 million.


Read more: http://www.smh.com.au/business/property/balmain-leagues-club-site-on-the-market-worth-more-than-70m

I don;t understand how those two statements work together?

@Magpie Magic:

Spiritual home?

Lazy reporting but in their defence maybe they were confused with where the Maggie’s spiritual home is Ashfield,Lidcombe,Campbelltown ? 😃

@softlaw:

@Tigerdon:


Rozelle Village, originally half-owned by former Tigers’ hooker Ben Elias, bought the financially embattled club’s headquarters for $1 in 2009 in return for taking over its debts of $23.5 million.

A sale would not cut all ties between Rozelle Village and the club, which will still owe the company about $11 million.


Read more: http://www.smh.com.au/business/property/balmain-leagues-club-site-on-the-market-worth-more-than-70m

I don;t understand how those two statements work together?

Two separate statements…

Balmain sold the site to RV for $1 in exchange for wiping off its debts.

The second statement refers to Balmain still owing RV money, and that this wouldn’t change even if RV sells the site to another developer.

It’s been a while and i can’t remember all the details off the top of my head but how did RV wipe out the debt? Was it a loan which Balmain was paying back to them or did they pay the debt in full in exchange for purchasing a valuable asset at such a ludicrously small price tag?

Buy for $1, sell for $70 million? Even accounting for some of the interest they’d have accrued they’d still be coming well out on top.

In any case the sale simply gives Balmain the hope that a new developer will get control and design a complex small enough to get approval so that Balmain Leagues club can exist once again and provide us with a revenue stream.

Balmain won’t get a cent of the $70 million though. We sold our rights for $1.

@Balmain Boy:

@softlaw:

@Tigerdon:


Rozelle Village, originally half-owned by former Tigers’ hooker Ben Elias, bought the financially embattled club’s headquarters for $1 in 2009 in return for taking over its debts of $23.5 million.

A sale would not cut all ties between Rozelle Village and the club, which will still owe the company about $11 million.


Read more: http://www.smh.com.au/business/property/balmain-leagues-club-site-on-the-market-worth-more-than-70m

I don;t understand how those two statements work together?

Two separate statements…

Balmain sold the site to RV for $1 in exchange for wiping off its debts.

The second statement refers to Balmain still owing RV money, and that this wouldn’t change even if RV sells the site to another developer.

It’s been a while and i can’t remember all the details off the top of my head but how did RV wipe out the debt? Was it a loan which Balmain was paying back to them or did they pay the debt in full in exchange for purchasing a valuable asset at such a ludicrously small price tag?

Buy for $1, sell for $70 million? Even accounting for some of the interest they’d have accrued they’d still be coming well out on top.

In any case the sale simply gives Balmain the hope that a new developer will get control and design a complex small enough to get approval so that Balmain Leagues club can exist once again and provide us with a revenue stream.

Balmain won’t get a cent of the $70 million though. We sold our rights for $1.

That’s why I hope Triguboff buys it.
He will look after the club.

Harry May part with 70 mill , he Has a wealth of 6.3 billion and build towers every day

I think the figure being thrown around is a pipe-dream for Mr Wright.

I’m no property developer, but I fail to see how anyone could pay $70m for the land, knowing they can only put a small scale development on the sight, and still come out on top.

Basic maths tells you that at say $750k per apartment off the plan, you would need to sell well over 100 apartments just to cover purchase costs + stamp duty. This doesn’t even take into account the holding, development, and construction costs, which would be tens of millions of dollars more.

How many apartments could a low rise development contain?

I understand Mr Wright would want to recoup his costs, but I’d be surprised if he got a cent more than $50m …. we’ll see what happens.

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