A $195 million deal to sell off part of Caulfield racecourse previously used for training and stabling is designed to free the Melbourne Racing Club of debt largely incurred by a bungled renovation of its marquee track.
An agreement reached with Mount Scopus Memorial College would see the parcel of land sold off within 18-24 months and developed into a new campus for the Jewish day school extending from Station Street along Kambrook Road and Booran Road, south to Glen Eira College.
A large section of the site has been unused since training ceased at Caulfield in 2021, while the heritage listed Lord Lodge would be preserved under the plan.
The deal would enable the MRC to pay off the $165 million debt it has incurred, partially through renovation works already undertaken at Caulfield.
MRC Chairman, John Kanga, has only been in the role two months and says the opportunity was a significant one for the Club.
“In making this decision, the MRC engaged leading consultants, Ernst & Young, to conduct a thorough review and assess the land and transaction,” Kanga said.
“Their advice strongly supported this agreement, which the Board believes is in the best interests of the Club and its members and puts us in an excellent financial position moving forward.
“The Club has been negotiating with the purchaser for around 12 months and the planned new campus has strong bi-partisan government support.”
“It will benefit not only the school and its students but also have a positive impact on local residents and the broader community.”
Matt Stewart
Kanga said the debt was a legacy of the actions of the former committee, which he said had “unnecessary and badly executed infrastructure works at Caulfield.”
Among those works were a new office building, a new inside track, a heavily criticised mounting yard and jockey rooms.
“The proposed use of the land is also a complementary use for the MRC and will also provide the opportunity for the school to utilise the function and exam venue services already offered by the Club to outside parties,” he said.
“This sale will completely clear that debt, reducing risk and stabilising the Club’s financial position.”
“And importantly, as previously announced, the new MRC Committee has resolved to reverse the policies of the previous committee, so that now the Club will retain racing at Sandown, not waste money on an unnecessary new Grandstand at Caulfield Racecourse and reinstate the Caulfield Mounting Yard to its rightful original position in front of the Grandstand and Winning Post.“
“All of this is very positive for the Club and the racing industry in general.”
The proposed deal is the latest coup in the extraordinary rise of Kanga, who went from nondescript Committeeman to rebel leader and then to chairman within six weeks earlier this year.
