Racecourse sale key to Goulburn securing $9.5 million in Racing NSW handout
Funding for a major infrastructure project at the Goulburn racecourse will depend on the country racing club handing over its land to Racing NSW, a members’ information meeting has been told.
In return for a $9.5 million cash injection to build a new stable complex, Goulburn will have to transfer its racecourse freehold to the regulatory body.
A development application for the new stables, expected to accommodate 80 racehorses, has already been lodged and approved by the Mulwaree Council.
The terms of the Racing NSW deal were unveiled to Goulburn and District Racing Club members for the first time on Monday night.
As it has done since acquiring the freehold on several other NSW racetracks, Racing NSW says it would enter into an extended lease agreement with Goulburn.
Goulburn’s management and board are in favour of a sell-off in a move they insist will help secure the club’s future.
The club’s membership of around 160 will vote on the proposal during an extraordinary general meeting on April 2.
They will vote on two resolutions.
The first resolution will be to sell the racecourse land as part of a “funding arrangement” in exchange for $9.5 million to build new stables.
Members will also be asked to give club chairman Ken Ikin and chief executive Robyn Fife the authority to “negotiate and finalise the terms of the funding arrangement with Racing NSW”.
Meanwhile, opponents of the proposal have vehemently challenged claims that the racecourse has no residential or commercial value.
Located on the northern outskirts of Goulburn, there has been significant housing development on neighbouring land in recent years.
Goulburn was built on a 40-hectare site in 1999 with the help of a $10 million grant the club received after lobbying at state and federal levels.
Based on recent redevelopments, members against the sale say the land is worth up to $30 million and that the club is being short-changed in the deal.
The meeting was told that no independent valuation of the racecourse land has taken place in conjunction with the Racing NSW proposal.
It’s understood Goulburn receives almost $200,000 in annual rental income from stables that are leased to local trainers.
The existing stables were built after the club borrowed the funds but Monday night’s meeting was told that financing was no longer an option because banks were reluctant to lend money to entities associated with the gambling industry.
An acquisition of the Goulburn racetrack would add to Racing NSW’s extensive real estate portfolio in an investment strategy that has gathered pace in the past decade.
Racing NSW owns Moruya, Scone and its surrounding precinct as well as Forster-Tuncurry racetracks.
The racetracks are part of an estimated group of 50 properties on Racing NSW’s books.
On face value Goulburn emerged as the big winner from a $20 million funding package announced in February, receiving $9.5 million.
But ultimately it will be up to the club’s members to decide whether it is a good or bad deal.
Warwick Barr
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