Dear Members,

 

We have three events coming up in the near future that I wanted to make you aware of. These are:

1. Special General Meeting to ratify redevelopment funding arrangements – Friday 18^th October 4.00pm
2. Course Walk – Sunday 27^th October
3. Member Information Session – Future Fund – Sunday 24^th November 10.30am

 

1. Special General Meeting

At our Member Information session held on 8^th September 2018, we forecast the need for the redevelopment to move into debt for a period of time. We are now approaching that point and we need to borrow funds to ensure the continuity of the project and to achieve a timely conclusion. These borrowings will be in place until such time as we move into the new clubhouse and we are able to vacate our existing clubhouse and sell the stage seven blocks of land that we currently occupy.

We need to put an appropriate funding agreement in place and we are seeking your agreement to do this.

We have surveyed the market for an appropriate lender and have identified Costa Asset Management as a good partner who can meet our needs. The facility we will establish with them would work as an overdraft enabling us to borrow and repay as we are able. We forecast to be in debt until April 2022, based on our best realistic view of block sales.

The facility available to us will be $15 million however we forecast our debt to peak at $7.5 million in August 2021 and then progressively decline with the sale of the Stage 7 blocks.

While $7.5 million is not an inconsiderable amount, against this we currently have saleable land comprised of 35 blocks, having sold and settled 67 allotments as of this date.

An important feature of any funding agreement is what is offered as security. In our case, security against the funding will be the  remaining lot in Stage 5, Stage 6 and Stage 7 land only. There is nothing else offered by way of security.

This is an essential step in the course of our redevelopment and I urge you to support the resolution we will present at the SGM on Friday 18^th October 2019 at 4:00pm.

 

2. Course Walk

We plan to have a course walk on Sunday 27^th October. We expect first we will need to have two walks to accommodate everybody. If the group is too large it is difficult for everyone to be able to hear Ashley’s commentary. Nearer the time we will communicate walk start times and will most likely need members to register in advance in order that we can size the two groups appropriately.

 

3. Member Information Session – Future Fund

We now have a framework developed with the support of our lawyers to establish the necessary governance to support and protect our Future Fund. This includes both changes to our Rules of Association and the process for the appointment of Guardians of the fund.

Prior to the Member Information Session on Sunday 24^th November at 10.30am, you will receive a letter explaining the changes that need to be implemented. The Information Session will then give members the opportunity to ask questions and to clarify points as needed.

Ultimately, changes to our Rules of Association will need to be agreed by resolution at our next AGM.

Our objective is to make sure that members understand and are clear on what the proposed changes are and how the Future Fund will operate.

We hope you can attend these three events – put them in your diary now – and continue to support our club through these dynamic times.

 

John Christophersen

President

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