City Tattersalls Group has closed a $24.7 million deal to sell its partially heritage-listed Pitt Street premise to First Sponsor Consortium, the same group leading the redevelopment project of the site currently.
In a statement, City Tattersalls Club outgoing chairman Patrick Campion said the decision to sell the club premises was not made lightly, but it was the right decision to protect the club’s future.
“The club explored several options to sell, and ultimately, accepted the best offer presented, which came from the consortium led by First Sponsor,” he said.
“This deal will safeguard the club’s future and will enable City Tatts and members to fully embrace its Castlereagh facility. We deeply value the commitment and support of our members as we navigated the options available to us.”
Speaking further with Club Management, the club’s chief executive Marcelo Veloz said a key part of the club’s future will be to focus on the facilities at the group’s two other venues.
“The board, management, staff, and members can now focus on the facilities that are available at The Castlereagh and The Barracks,” he said.
Veloz also revealed that a taskforce has been set up to help drive the future direction of the group.
“A group of members have volunteered to be part of a rebuilding taskforce that is going to help reset and rebuild City Tatts,” he said.
The sale of the Pitt Street site comes as the club moves to clear itself of debt that has reached an “alarming level”. According to minutes from the group’s recent annual general meeting, the club is currently $28 million in debt.
Since the end of 2022, the Pitt Street site has been closed for a major redevelopment project. When completed, it was expected to deliver the group a new clubhouse, along with a 100-plus room hotel and residential tower.
Campion told the AGM that the club cannot wait until the redevelopment is completed to sell.
“Our club needs funds now. Payment in 4-5 years’ time is no good to us,” he emphasised.
The City Tattersalls Club redevelopment is a joint-venture project undertaken by a consortium led by First Sponsor and ICD Property, with Richard Crookes Construction responsible for the build.
First Sponsor’s Group CEO Neo Teck Pheng said the sales outcome is positive for all stakeholders involved.
“We recognise the importance of the City Tattersalls Club within Sydney, Australia, and are glad that we have the opportunity to do our part to help the club safeguard its future,” he said.
“We look forward to working alongside BVN Architects and FJC Studio (formerly FJMT Studio) to enhance the future use of the former club premises to ensure it adds value to the local community and aligns with the project’s broader vision.”
The sale will see the original City Tattersalls Club premises, which spans approximately 3,200 sqm, be integrated into the existing redevelopment plans.
