Racv Drives Forward With $165m Club Deal
The Age
Wednesday June 26, 2002
RACV is about to sign a syndicated funding deal to finance its controversial new $165 million 501 Bourke Street club, which is in the first stages of construction.
Macquarie Bank is believed to be coordinating the deal.
RACV declined to comment yesterday on the details of the arrangement, although it is believed to involve debt funding.
The new 13-storey building has attracted criticism for being of little benefit to RACV's 1.5 million roadside-assistance members.
Only RACV club members will be able to use the club's facilities, which will feature expanded hotel-style accommodation, an indoor swimming pool, gymnasium and bigger dining areas.
Critics have accused RACV directors of making road-service members subsidise the club although they do not have equal representation on the board.
RACV collected $98.4 million in subscriptions from road-service members last financial year, compared with $4.4 million from club members.
Chairman Max Lay told members at last year's annual meeting in November that the building was an investment and would be funded through a combination of cashflow from rental streams and development of residual sites in Queen and Little Collins streets.
He said the group's existing 40-year-old Queen Street headquarters was nearing the end of its useful life.
Dr Lay hinted at the time that the group would seek an initial funding option of a construction loan.
© 2002 The Age
