Auburn Sports Soccer Case Study
Client | Auburn Soccer Sports Club
Sector | Not for profit club
Services | Development potential analysis and maximisation strategy, competitive process to identify a
development partner, development agreement negotiation and management
Overview
An aging 1950’s building together with changes to the local zoning were the catalysts for the Auburn Soccer
Sports Club’s transformation into a vital and future-facing cornerstone of Auburn’s social and sporting
community.
The Brief
As a result of an early conversation with Augusta Advisors regarding the potential opportunities that the recent
council zoning changes represented for the Club, Augusta Advisors was engaged to assess the development
potential of the property including identifying:
The development potential of the property and the value that it could represent to developers
The likely options for the development of new club premises
Opportunities to generate new rental revenue streams and apartments
The impact that the local community’s changing demographics were likely to have on the Club’s future
Phase two of the engagement included a rigorous feasibility analysis of the identified options, recommendation
of the option representing the best commercial outcome for the Club and most importantly delivering a detailed
development strategy setting out the necessary steps to achieve the required outcomes, which included:
Creating new Club premises including an exciting new fit-out
Releasing cash
Ownership of rental space to secure new revenue streams
Approach
Taking the Club’s key objectives of creating new Club premises and generating diversified revenue streams
together with the property’s physical characteristics, town planning development controls and market
conditions into consideration, Augusta Advisors formulated a detailed step by step strategy for achieving the
optimum commercial outcome while minimising the Club’s risk.
Mitigating the club’s risk was a fundamental part of the development strategy, particularly in eliminating the
conflict of interest that all too frequently exists between a Club’s objectives and those of the development
company, a conflict that had the potential to cost the Club millions of dollars in commercial value.
Augusta Advisors managed this by creating an ideal development partner profile, identifying and targeting
development partner that matched those criteria and managing a competitive negotiation process on
the Club’s behalf that included advising and acting for the Club through the legal negotiation of the
development agreement.
Results
Following a rigorous negotiation process Augusta Advisors secured the execution of an exceptional, low-risk
development agreement that saw the development company take on ALL the development risk while
providing the Club with:
An attractive financial package including a significant cash component
New, fully fitted out, architecturally designed club premises and parking
Ownership of income producing retail space, including a valuable lease that Augusta Advisors negotiated on the Club’s behalf for a child care facility
Following the successful negotiation of the development agreement, Augusta Advisors was appointed to
manage the Club’s commercial position during development, guiding the Club and its board through every step
of the process, managing their rights, risks and responsibilities under the development agreement and with a
sharp focus on compliance by the development company.
Standing in place of what was the old Club car park is now a 12 storey building including a ground floor childcare
centre and residential apartments. The long term lease of the large ground floor child care centre delivers a
substantial revenue stream to the club.
Stage 2 comprises an 11 storey building that is currently under construction and will include the new, fully fitted
out Club with residential apartments above and extensive basement car parking.
Stage 3 of the project will include substantial Club owned retail and commercial space below a residential
apartment tower and is due to complete Q4 2022.
“Auburn Soccer Club has recently entered into an agreement with a developer that will provide us with new Club premises, commercial space that we can lease out to create additional ongoing revenue, and some extra cash. The deal is structured to minimise our risks and protect the Club during the development process.
We have been fortunate during the process to have benefitted from the advice and assistance of Augusta. Without Augusta’s guidance and hands-on involvement, I doubt that the Club would have secured an outcome as good as it has.
I and my Board would have no hesitation in recommending Augusta for a similar role.”