194 Pitt Street Hoax: 3 – The Back-up Plan?Posted: August 1, 2017
When Tony Guilfoyle and the Committee pitched the purchase of 194 Pitt Street to members, they said they had “a very good exit strategy” if the Club faced financial difficulties due to the purchase.
They could “lease the building as a separate concern (net income $477,190 per annum)” or “worst case scenario would be to sell the building”.
The Club faced continual financial difficulties from the day it was purchased, so how did the exit strategy work out?
Not very well.
They never rented out the building, and they never sold it.
The promise of renting the building was just another Guilfoyle lie. It was never going to happen. Even in 2007 everyone in the property game laughed at this. Nobody could recall the top four floors ever being rented out. You only have to take one look at the building to see that no one would rent it.
And that’s before you consider the money that would have to be spent on it to make it acceptable to any tenant (or the council).
As for selling it, who exactly would want to buy it?
Even 9 years on they’d be lucky to get their $9 million back, never mind the holding costs since 2007 which are another $7 million, at least.
City Tatts Information Desk