MERGER PROPOSAL COULD SEE SUPER CLUB TEE OFF IN VICTORIA
By Mathilda Andersson
ONE OF THE LARGEST LIFESTYLE AND RESIDENTIAL COMMUNITIES IN MELBOURNE ’ S SOUTHEAST , THE SANDHURST CLUB , HAS FORMALLY PROPOSED A MERGER OFFER TO ROSSDALE GOLF CLUB TO SECURE LONG-TERM FINANCIAL VIABILITY .
Located in the recently identified third most socioeconomically advantaged suburb in Melbourne , the Sandhurst Club estate boasts two championship golf courses designed by Peter Thomson , state-of-the-art facilities , and 1332 premium residential lots .
The merger proposal , which has been under consideration by the Rossdale board since October 31 , intends to amalgamate the management and operation of the two clubs into one super entity on Sandhurst ’ s current premises in the blue chip suburb .
The country-club-styled estate has cited dwindling membership numbers and an ageing membership profile to be behind the proposal .
Along with a recorded oversupply of courses in Victoria ’ s southeast , according to the document , these factors combined have led to a significant deterioration in financial viability for both entities .
“ This offer … gives the two clubs the opportunity to address a very challenging environment in
a timely and professional transition ,” the document stated .
“ It will ensure an appropriate number of clubs remain in Melbourne ’ s south-east catchment , ensuring both clubs remain formidable through the effective use of its significant land resources to continue delivering premier golfing facilities rather than be lost or capitalised by other industries .
“ Sandhurst is keen to boost usage of its two 18-hole courses and club facilities while providing a modern , broader offering and establishing a robust , viable club that will prosper through the inevitable change facing the golf industry .
“ The merger would greatly benefit both clubs .”
In May earlier this year , the Leader could report on Sandhurst CEO Julian Murray ’ s financial concern for the club in an executive update to residents , revealing expected growth in golf membership and visitor use of the two championship golf courses had not occurred .
“ The club is optimistic that necessary efficiencies can be acquired to achieve budget this year and next with minimal impact to member services ,” he wrote . “ However , beyond this period unless substantial gains in golf course utilisation are achieved through either golf membership or visitor usage , hard decisions will be made that will inevitably impact golf member services .
August this year , but the offer failed to gain traction and a revised and more compelling version was submitted in late October again .
The new tender features generous financial support to the Rossdale course and facilities to remain open for the initial three years of proceedings ( which could be extended another two years ) estimated to an annual disbursement of $ 300,000- $ 500,000 .
Additionally , the offers extends a complimentary ten-year membership subscriptions for all Rossdale voting members , and members at both clubs will enjoy all three 18-hole club golf courses prior to operations transfer to Sandhurst Boulevard .
The offer also includes a clause giving naming rights of one of the Sandhurst golf courses to “ Rossdale ”, and ensured joint representation on the combined entity Board and Golf Committee .
Sandhurst marketing manager Natalia Peterson said the club has been vulnerable to many of the forces that afflict Rossdale and other clubs in the area , but said “ it is in a stronger financial position due to having newer facilities , broader offering and being part of an integrated residential development ”.
“ This merger proposal has been developed as a major strategic initiative for both clubs to embrace the future ,” she said .
“ Consolidation of golf clubs in this catchment will be inevitable .”
Once closed , the bulk of the Rossdale club site would be sold for re-development , with the remainder being used for the construction of a proposed new sporting , cultural and environmental complex to the value of $ 10m , that would be gifted to the Aspendale community .
The proceeds from the land sale would fund a number of initiatives at the new location , as well as creating a future trust to guarantee the consolidated club ’ s long-term future . In case the respective boards of Rossdale and Sandhurst agree in-principle commercial terms , then the proposal will be put in front of a members vote .
More than 75 per cent of members must vote in favour for the joint venture to proceed .
“ The club will continue to pursue aggressively all merger and acquisition opportunities to give Sandhurst the best probability for a robust and sustainable future .”
In that steadfast manner , the premium residential and golfing community reportedly approached Rossdale Golf Club in late