Like all projects, the start of a club redevelopment is defined by excitement and optimism. The design schemes show brand new and perfectly functioning facilities and partners such as developers make promises of untold wealth.
Fast forward to the details of the project and often the shine has come off. Contracts are complex and risky, and negotiated against developers and agents who are expert at shifting risk your way and profit their way. Designs become compromised, putting into question the value to members in the first place.
We have extracted several clubs from the clutches of deals which started with hope and optimism before fading to fear and the realisation that the outcome will be compromised both financially and for broader club objectives.
Meeting with clubs that want to extract themselves from a difficult situation, we hear two typical questions. First, if we have already started the process, isn’t it too late to improve things now? Second, if we do change tack now, does that mean all our time and resources to now have been wasted?
Our answer to both of these questions is clear: No, and no.
There’s a little more detail on each question below.
If we have already started the process, isn’t it too late to improve things now?
The typical property development process for a club takes place over three phases: 1. advice, 2. partnership negotiation, and 3. delivery.
So often, the first phase is skipped over and clubs go straight into negotiations with a developer. In this case, no matter where the club is in the process, there is value in going back to basics and obtaining expert and independent advice to clearly understand the economics of the project, along with other objectives, opportunities and constraints.
If we change tack now, does that mean all our time and resources to now has been wasted?
Once we have helped the club genuinely understand the critical information above, it becomes clear to the club whether the path they are on is the right one. Even if it is not, we are able to assist the club to leverage off its previous efforts to continue without delay, but on a steady and secure platform of knowledge and strategic clarity.
Whatever your property objectives and project status, it is always useful to receive informed and independent advice, and we would be happy to have a discussion.
“Augusta Advisors were methodical from the outset. The negotiation process is the most important and we could not have done it by ourselves. Augusta Advisors does this day in and day out, and therefore they have the expertise. They handled it very well and we were very pleased with the outcome.”
Tony Lycakis, General Manager at Mortdale RSL
To learn more about how we can help you get the most out of your club property please contact us on (02) 9966 8898 or email [email protected]