Woolooware Bay Town Centre - Cronulla Leagues Club project
In August 2012, the Cronulla Sutherland Leagues Club's (the Club) application was approved for the high profile, $500 million development of a new town centre on land owned by the Club in Woolooware Bay.
Developer, Bluestone Capital Ventures (a consortium comprising Capital Corporation and Bluestone Property Solutions), were engaged to undertake the project. When completed, it will deliver up to 600 residential apartments, a 17,500 sqm modern retail centre, an entertainment and leisure precinct as well as rehabilitation and protection of the Woolooware Bay foreshore, and an extension of existing shared foreshore cycle and pedestrian paths. The Project will also include a refurbishment and re-vitalisation of the existing Club licensed premises.
Bluestone Capital Ventures wanted the transaction documents to clearly identify risk allocation and the roles and responsibilities of all parties and to minimise liability, address circumstances of default by any party and ensure transaction costs including stamp duty were minimised.
As Bluestone Capital Ventures is not the land owner, they wanted appropriate security in place to ensure their interests would be protected whilst at the same time incorporating the objectives of the numerous other stakeholders
Our Property and Construction, Projects & Infrastructure teams advised Bluestone Capital Ventures on all aspects of the transaction. This involved advising on the development structure, negotiating a forbearance arrangement with the Club's financiers, documenting the staged development of the site, as well as the subsequent conveyancing of residential, commercial and retail lots.
Key issues included ensuring that the transaction documents were structured to protect the interests of the multiple parties, minimise transaction costs (including taxes and duties) and effectively address circumstances where there is default by a party. In particular, the multi-party deed needed to clearly articulate the roles and responsibilities of the developer, the Club and the Club's financier—who all had very distinct interests in the project.
Transaction documents were drafted to effectively protect the various interests of all parties, and to minimise the costs to, and liability of, our client.
The stage one residential component and the retail centre are on track for completion in 2015. The contract for sale of the residential units (220 in stage one) has been finalised, and the sales process commenced in February 2014. Negotiations have also commenced with potential retail tenants.