The Cyprus Community of NSW have been left with two options in regard to the future of the Cyprus Club in Stanmore : 1. Stay and redevelop or 2. Sell and purchase a new property to relocate.
The decision will be made at an Extraordinary General Meeting (EGM) scheduled for this Sunday, October 22, at 3 p.m., which will be held at the Stanmore club.
Andrew Costa, President of the Cyprus Community of NSW (CC NSW) explained that this decision comes as a direct attempt to improve the association’s financial situation.
“The Community has been operating at a loss for more than ten years and has been surviving on borrowings from the bank and Cyprus Capital,” Mr Costa told Neos Kosmos.
“This situation cannot continue as has been made clear by the Community’s independent external auditor in the past three annual reports. In addition, the Community’s banker has notified the Board they are no longer in a position to renew the current loan which expires early next year.
The option to stay at the current location and do nothing has been deemed unviable and do little to alleviate the financial debt.
Members will be asked to vote by way of a paper ballot from the two options, and the result will guide the Board’s actions moving forward.
Option 1: Stay at the current location
The option to stay at the Stanmore property would result in the Board being authorised to redevelop it while still preserving the Club’s identity.
This would involve the Club choosing between renovating the current premises, or demolishing it to build anew on the same site.
A subsequent Development Application would be required and may be completed in collaboration with the incoming buyer/joint venture party, though a joint venture of the entire site will only be considered if it does not expose the property and/or the Club to any undue risk.
A Joint Venture party would be required to pay out all the debt and provide working capital for the Club. The Club may offer its property without the need to mortgage the land. The developer/investor will put in their assets as security to fund, design and build the project.
The Club would continue to trade at the same location for at least two years to complete the Development Application process and would be relocated whilst the development takes place.
Option 2: Sell and relocate
The option to sell would see the Club, most recently appraised at $70 million, placed on the open market.
This would cover the Club’s depts entirely, while the sale terms would include a two-year lease back at a nominal rent of the current property as they locate new premises within a 10km radius of Stanmore.
Mr Costa stated that the Board is not favouring either option, leaving it up to the members to decide between both viable options.
“Either option will lead to the building of a new club with up-to-date modern facilities and with money left over for investment to secure the future of the Cyprus club and Cyprus Community in NSW,” he told Neos Kosmos.
Implementing the Cyprus Trust
As part of either option, the Board has proposed to establish an independent trust to hold and manage the funds.
The “Cyprus Trust” would involve the Board seeking advice from suitable, qualified third parties to appoint on a three-year term up to five trustees, who would manage the funds.
All members will be entitled to nominate suitable persons for the role, with at least three members to be independent of the Club and two to be full members of the Club.
“It is proposed the Cyprus Trust manage the proceeds of the Sale/Go process and invest all proceeds after the building of a new Club,” Mr Costa said.
“They will invest in conservative secure assets and will only use the annual income for the Community. The capital assets will not be touched.”
The Cyprus Community of NSW has been running information sessions on this vote leading up to the EGM to explain the process and the reasons behind it as clearly as possible.
The last of these will be held this Sunday from 12.30 p.m.-2.30 p.m., directly preceding the EGM.
The association has mailed out eight pages worth of background information on this EGM to be as transparent as possible, while answers to FAQs have been posted in the foyer of the Stanmore club for any visiting members to look at.
Anyone with questions has been asked to send them via email to cyprusclub@optusnet.com.au before 5 p.m. on Friday, October 20.
