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Yering Meadows (Croydon GC)


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#31 bubaboy

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Posted 08 April 2015 - 09:25 PM

Bank want their $3.5M back soon..

 

A Special General Meeting of Yering Meadows Golf Club Limited will be held in the Clubhouse at 178-180 Victoria Road, Yering, Victoria at 7.30pm on Tuesday 28th April 2015.

 

Agenda Resolution -

 

IN ACCORDANCE WITH CLUB RULE 15.4.3 THE BOARD ARE SEEKING THE MEMBERS APPROVAL FOR THE SALE OF THE CLUB’S FREEHOLD INTERESTS IN THE LAND, GOLF COURSE AND BUILDINGS WITH THE CLUB TO RETAIN THE GOLFING OPERATION AND THE HOSPITALITY BUSINESS AND OWNERSHIP OF THE WALNUT TREES AND ALL PLANT AND EQUIPMENT.



#32 Tigerblood

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Posted 08 April 2015 - 09:59 PM

So does that basically mean they want to sell the land, but want to lease it back so they can continue to operate?

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#33 RobNewy

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Posted 09 April 2015 - 05:21 AM

So does that basically mean they want to sell the land, but want to lease it back so they can continue to operate?


Does that make financial sense?

#34 Hawkers2015

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Posted 09 April 2015 - 06:56 AM

Does that make financial sense?

 

 

Only if it means you can operate long enough for the competition to die first.  Eastern look pretty strong so I can't see that happening.


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#35 Midlander

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Posted 09 April 2015 - 08:43 AM

How can they be in so much poo (and debt) after selling their original land for squllions? 

 

Sounds like their board is incompetent. What a shame. 



#36 75@Dorset

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Posted 09 April 2015 - 08:54 AM

How can they be in so much poo (and debt) after selling their original land for squllions? 

 

From other discussion on the Eastern development thread, they didn't sell the Dorset Rd land for as much as you might think.



#37 Hawkers2015

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Posted 09 April 2015 - 11:31 AM

How can they be in so much poo (and debt) after selling their original land for squllions? 

 

Sounds like their board is incompetent. What a shame. 

 

Apart from the gradual decline of golf as a popular sport and the resulting oversupply of golf product they

 

Didn't sell for squillions

 

Paid too much for assets built

 

P!ssed up money in a hair brained scheme to grow walnuts

 

Seriously misjudged how hard it would be retain existing members and attract new ones to the new facility

 

have to contend with competiton from other facilities, scoupon deals and non club member golf options like RACV, Crown, SGA


Edited by Hawkers2013, 09 April 2015 - 11:47 AM.


#38 Malvern

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Posted 09 April 2015 - 12:04 PM

Geez Hawkers its a cautionary tale.

 

Don't get the debt under control you go under. 



#39 wOzz

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Posted 09 April 2015 - 12:14 PM

I hope Keysie are looking at this VERY closely.


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#40 GhettoGolfer

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Posted 09 April 2015 - 12:42 PM

That's the problem with boards these days.

A lot of those whom are voted in are the worst equipped with making them.
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#41 TBE

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Posted 09 April 2015 - 01:24 PM

How would a potential buyer see that as a viable investment?

#42 Hawkers2015

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Posted 09 April 2015 - 01:44 PM

How would a potential buyer see that as a viable investment?

 

they want a faster way to p!ss their money up than tearing up $50 notes



#43 Hawkers2015

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Posted 09 April 2015 - 01:45 PM

on second thoughts maybe as a vehicle to launder drug profits or other ill gotten gains ...



#44 northerner

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Posted 09 April 2015 - 02:37 PM

All depends on how much it is worth.  Lets say $5m.  Buyer might want 5% yield so that $250000 in rent.  After paying the bank, there may be a bit left over to pay that rent for a few years ,but I suspect they would struggle going forward long term



#45 Hawkers2015

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Posted 09 April 2015 - 03:30 PM

Its a big site enough for 36 holes, land value should be north of $30m, but lets say $30m. Its all relative anyway.

 

Starting rent at a 5% yield is $1.5m, but you would reckon our investor will want escalators on that.  I have ignored the prospect of the club as tenant having to cover the landlord's outgoings and in particular land tax (2.25%).

 

They owe the bank $3.5 so will have $26.5m left.  Most of the $3.5m debt is operating losses, so they must be losing something like $0.5m per annum.

 

In the short run the interest earnings will cover the current deficit levels but the $1.5m rent still has to be paid on top and in future years the rents will rise as well.  On an extremely rough back of an envelope calculation and without some miracle turnaround in trading, I can see the club burning through the honeypot in around 10 years.


Edited by Hawkers2013, 09 April 2015 - 03:34 PM.

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