In September 2017, the MCC Foundation announced it would complete a strategic review of the MCC Kew Sports Club following the decision by the independently controlled board of that Club to place it in voluntary administration. That review has been completed and the property will be divested if a suitable purchaser can be identified. It is the MCC Foundation’s primary objective for the property to remain for the use of the community.
In August 2012, the MCC Foundation entered into a partnership with the Kew Heights Sports Club (KHSC). Under this partnership:• Ownership of the property at 397 Barkers Road in Kew was transferred to the MCC Foundation and the KHSC name changed to MCC Kew Sports Club. A 21-year lease was granted to the MCC Kew Sports Club at peppercorn rent.
• The MCC Kew Sports Club continued to operate the club independent of the MCC Foundation, under the control of its own board.
• The MCC Foundation invested $5 million into the upgrading the KHSC facilities – the lawn bowls green, tennis courts and the clubhouse – and paying out the club’s outstanding debts.
Despite the upgrading of the facilities, debt repayment and subsequent capital injections by the MCC Foundation, the MCC Kew Sports Club continued to struggle financially. The independently controlled board of the MCC Kew Sports Club announced in September 2017 that it had placed the club into voluntary administration.
From that point, the MCC Foundation stepped in to continue operating the MCC Kew Sports Club at its own expense while it completed a previously announced strategic review.
The review found that the MCC Kew Sports Club is not financially viable in its current form. As a consequence, the MCC Foundation has elected to divest the property.
In doing so, the MCC Foundation has determined that its objective is to ensure the property is retained as a community facility.
The MCC Foundation will proceed with the divestment process through closed tender arrangements managed by Ernst & Young’s Real Estate Advisory Services.
The following quotes should be attributed to Melbourne Cricket Club President Michael Happell:
“In entering into a partnership with the former Kew Heights Sports Club, it was the MCC Foundation’s desire for the property to support the MCC sporting sections and the local community.
“While we are disappointed the Club was not financially viable, our objective is to ensure the site can continue to operate as a community facility.
“If the closed tender process does not identify a purchaser that meets the MCC Foundation’s objective, then other options will be considered at that time.”