Official Shark Park & Woolooware Bay Development

[yadam]

We still make money every home game at present despite the current capacity so ignore old financial models previously stated. Total Group profit last year was $700,000. Looking at 17,500 capacity in ground with extras of 1000 odd external to the ground around corporate (Leagues club deck, Quest Apartments and Chinese Restaurant) once initial development is finished. Have Corporates lining up for Hospitality suites but don't have the space at present. Possibility of having under the PB stand refurb of Bars/Food/Toilets/Office space complete next season some time (we still own all the ground level), but that is dependent on Council planning rules allowing us to split this part away from the upstairs club refurb. Financials were up across the board so we are travelling well.

Kareela, has essentially almost repaid for itself already, with huge uplift in the future. Between Kareela and the Cronulla building (once the cash positive long term lease is in place) covering the Football club losses, the main League Club profit will all be cream each year.

 

[Six Again]

We still make money every home game at present despite the current capacity so ignore old financial models previously stated. Total Group profit last year was $700,000. Looking at 17,500 capacity in ground with extras of 1000 odd external to the ground around corporate (Leagues club deck, Quest Apartments and Chinese Restaurant) once initial development is finished. Have Corporates lining up for Hospitality suites but don't have the space at present. Possibility of having under the PB stand refurb of Bars/Food/Toilets/Office space complete next season some time (we still own all the ground level), but that is dependent on Council planning rules allowing us to split this part away from the upstairs club refurb. Financials were up across the board so we are travelling well.

Kareela, has essentially almost repaid for itself already, with huge uplift in the future. Between Kareela and the Cronulla building (once the cash positive long term lease is in place) covering the Football club losses, the main League Club profit will all be cream each year.

Key message from last night was that although the delays & cost escalations are not great news we are fortunate to have competent management & board running the club through a tough period .

 

[SF]

Key message from last night was that although the delays & cost escalations are not great news we are fortunate to have competent management & board running the club through a tough period .

Yes, though I feel like for $37 million costs ($9 million repairs and $28 million fitout), there should be more detail/breakdown about where that money is being spent, who is doing the building work etc. I realise that is why they have the question-and-answer session, but it should not really need to be dragged out.

It makes you wonder... if we had no traditional link to the site, would we have paid $37 million to build a leagues club there. Though I do realise that having the leagues club there is critical to the success of the football team too.

 

[HaroldBishop]

Yes, though I feel like for $37 million costs ($9 million repairs and $28 million fitout), there should be more detail/breakdown about where that money is being spent, who is doing the building work etc. I realise that is why they have the question-and-answer session, but it should not really need to be dragged out.

It makes you wonder... if we had no traditional link to the site, would we have paid $37 million to build a leagues club there. Though I do realise that having the leagues club there is critical to the success of the football team too.

It's a shitload of money for a refurb, isn't it

 

[SF]

It's a shitload of money for a refurb, isn't it

Yeah I guess though when I look at other pub sales, they can go a lot higher!

Mosman family buys The Oaks Hotel for price ‘not far away’ from $175m

The Oaks Hotel in Neutral Bay has finally been sold to a local investor who is thought to have made his money in the film industry.

www.afr.com

Northies and Mona Vale Hotel sold for $57 million in 2014, so probably double that by now:

Laundys add Northies and Mona Vale to the portfolio

Rich-lister publican Arthur Laundy has acquired popular Sydney pubs Northies in Cronulla and the Mona Vale Hotel on Sydney’s northern beaches in one line for $57 million.

www.afr.com

 

[Ronnie]

Key message from last night was that although the delays & cost escalations are not great news we are fortunate to have competent management & board running the club through a tough period .

Was that the message from management and board?

 

[Ronnie]

Yes, though I feel like for $37 million costs ($9 million repairs and $28 million fitout), there should be more detail/breakdown about where that money is being spent, who is doing the building work etc. I realise that is why they have the question-and-answer session, but it should not really need to be dragged out.

It makes you wonder... if we had no traditional link to the site, would we have paid $37 million to build a leagues club there. Though I do realise that having the leagues club there is critical to the success of the football team too.

Does anyone know if there were penalties in place for the developer re. this delay? It will be 2 years late. Putting aside the increase in cost, we are losing shiteloads in expected income from the club.

 

[SF]

Does anyone know if there were penalties in place for the developer re. this delay? It will be 2 years late. Putting aside the increase in cost, we are losing shiteloads in expected income from the club.

No, they mentioned this from the start of the meeting, there was never a sunset clause in the original deal (where we had no real leverage). Maybe in hindsight it should have been part of the 2019 "final" deal... though that was generally a good deal, and nobody would really have predicted Covid either.

 

[SF]

One other thing they mentioned... when we sold our 20% share of the retail centre, that share would also apparently have meant we were liable for 20% of the costs of the fitout and overruns etc. Covid happened a few months after that deal was finalised, and they mentioned if we had been liable for 20% of costs throughout this period, that would have sent us to the wall.

I never realised that the retail share also involved the liabilities.

 

[HaroldBishop]

Does anyone know if there were penalties in place for the developer re. this delay? It will be 2 years late. Putting aside the increase in cost, we are losing shiteloads in expected income from the club.

I'm no lawyer but surely covid would override clauses such as those to an extent.

 

[Born&bred]

I'm no lawyer but surely covid would override clauses such as those to an extent.

You'd think that would be covered by the Force Majeure clause...

 

[Six Again]

Was that the message from management and board?

No , it was mine - Remembering we were $13.5 million in debt to St George/Westpac & Westpac ready to foreclose , $23 million in trading losses having been covered & now making profits , funds invested & owning real estate with development potential (Kareela) . We actually now have banks wanting to lend to the organisation & a full sponsorship book . Still plenty to do & some balls still in the air but Up Up.

 

[Ronnie]

No , it was mine - Remembering we were $13.5 million in debt to St George/Westpac & Westpac ready to foreclose , $23 million in trading losses having been covered & now making profits , funds invested & owning real estate with development potential (Kareela) . We actually now have banks wanting to lend to the organisation & a full sponsorship book . Still plenty to do & some balls still in the air but Up Up.

Agree, they seem to have a good job on balance.

 

[Ronnie]

No, they mentioned this from the start of the meeting, there was never a sunset clause in the original deal (where we had no real leverage). Maybe in hindsight it should have been part of the 2019 "final" deal... though that was generally a good deal, and nobody would really have predicted Covid either.

Thanks, yeah, it’s easy to have 20/20 hindsight. They seem to have done most things well. Just want the damn thing done.

 

[Matty C of the Shire]

No , it was mine - Remembering we were $13.5 million in debt to St George/Westpac & Westpac ready to foreclose , $23 million in trading losses having been covered & now making profits , funds invested & owning real estate with development potential (Kareela) . We actually now have banks wanting to lend to the organisation & a full sponsorship book . Still plenty to do & some balls still in the air but Up Up.

Would be interesting if we can get the development potential out of Kareela, without upsetting the profits. Though a lot could require council approvals

 

[Matty C of the Shire]

No , it was mine - Remembering we were $13.5 million in debt to St George/Westpac & Westpac ready to foreclose , $23 million in trading losses having been covered & now making profits , funds invested & owning real estate with development potential (Kareela) . We actually now have banks wanting to lend to the organisation & a full sponsorship book . Still plenty to do & some balls still in the air but Up Up.

True having the two jerseys (NRL and WNRL) Full gets additional $. just have to get more ppl interested in coming to the WNRL games

 

[Jaz]

Would be interesting if we can get the development potential out of Kareela, without upsetting the profits. Though a lot could require council approvals

I'm genuinely surprised Kareela is bringing in the money that it is. It's pretty out of the way – and I live in Jannali.

 

[HaroldBishop]

I'm genuinely surprised Kareela is bringing in the money that it is. It's pretty out of the way – and I live in Jannali.

Yeah me too, it's not a great location at all. Hats off to the team for making it work as well as they have.

 

[Matty C of the Shire]

Yeah me too, it's not a great location at all. Hats off to the team for making it work as well as they have.

Bloody oath. They have done well. Been there a few times, and it always had patrons

 

[SF]

I'm genuinely surprised Kareela is bringing in the money that it is. It's pretty out of the way – and I live in Jannali.

Sporties must be spewing for selling it at the price they did. Deal of the century.

Even without the profit, it’s awesome having a presence closer to centre of the Shire