17 minutes ago, Half forward flank said:

New owner got a bargain. At 2 million a block for minimum, 3/4 acre blocks of land. I walked the Bentleigh Club a few days ago. Completely run down on the outside as well as second rate inside. It had potential to make a lot more revenue than it ever did. I am against pokies but less so in affluent bayside where the punters were mostly locals with a few bob to spare. Is it a good sale. Yes/No. I think it depends on how we spend and invest the proceeds.

Was never a great location in a side street 

We got a good price 

In a couple of our annual reports going back 5 years or so our combined revenue from both venues was around $11Million with a net (after costs) of around $4Million

That sort of money isn't easily replaced unless other forms of income are introduced as well as a more streamlined FD with less costs (as we've now got during cxxxx)

With the capital gains we've acquired it will be interesting to see what we do with the $23Million

When it was announced we would sell Leighoak and Bentleigh I recall PJ said the lost pokie profit would be covered by investments, more sponsorship, naming rights for our new facility, increased memberships, increased gate takings. 

By the sound of it the Bentleigh club was in need of refurbishment to make it an attractive venue, which would eat into pokie profits.  It was quite a soulless place a few yeras ago.

Factor in those refurbishment costs we won't spend and other revenue sources I'm pretty confident we come out in front. 

And if Evergrande becomes the new Lehman Brothers we may be in for quite a rocky economic ride in the next year or two.  Good time to cash in imv.

The other issue with the Bentleigh Club was the revenue from poker machines. While I have no problem with clubs operating poker machines, many of our supporters - possibly even the majority - do. So while we still had them it made many supporters uncomfortable. Getting out of the pokies business helps unify the supporters.

3 hours ago, daisycutter said:

think your maths are a liitle bit out there, hff

the site is the equivalent of 18 adjacent block sizes, given a value each of around 1.25m

these adjacent block sizes all seem to be less than an 1/4 acre in size......more like 1/5 of an acre

Will stand corrected on block/size but pull down weatherboards in Yawla St are priced between 1.4 to 1.8 million.  I am ambivelant about the sale until I hear where we invest the money.

1 minute ago, Half forward flank said:

Will stand corrected on block/size but pull down weatherboards in Yawla St are priced between 1.4 to 1.8 million.  I am ambivelant about the sale until I hear where we invest the money.

yeah, 1.25M per block doesn't look like great prices in today's property market. ok prices, though