As many of you would recall, when TG Millner Field was sold by Vimiera Recreation Grounds Limited (“VRG”) to North Ryde RSL Community Club Limited (“NRRSL”) in October 2017, there was a delayed settlement, with the final payment due in April of this year.
In recent days, we were approached by North Ryde RSL seeking to vary this agreement. The Directors of VRG and of the Eastwood Rugby Foundation considered that this variation is in the best interests of Eastwood Rugby and accordingly have accepted NRRSL’s request.
The Directors consider that this variation will assist the Club’s long term strategy and in particular the relocation to our new purpose built, state of the art rugby headquarters.
Questions and Answers about this change
Why has this change occurred?
NRRSL approached VRG and EDRUFC (together “Eastwood Rugby”) and asked us to consider a variation of the TG Millner Field land sale agreement. We reviewed the proposal and decided that it was in the best interests of Eastwood Rugby so we have accepted the variation.
Can you tell us the details of the changes?
the timing for the final purchase price instalment of $12.5m was extended for 12 months to 9 April 2021; and
a payment of $2.94m which was originally contingent on TG Millner being developed or on-sold by NRRSL is now unconditionally payable on 9 April 2021.
Does this change mean that there is some chance we won’t get our money?
As part of the variations that have been agreed, Eastwood Rugby has been given greater security over the assets of NRRSL. Our legal advice is that our position is improved.
What happens if NRRSL defaults on this payment?
Eastwood Rugby holds a first ranking mortgage over TG Millner Field. If the debt that is owed is not paid, the mortgagee (ie Eastwood Rugby) has the right to sell TG Millner to recover the monies owing.
Eastwood Rugby does not have the right to have TG Millner re-transferred.
In certain circumstances, Eastwood Rugby also has the right to appoint a receiver or manager over NRRSL.
Can NRRSL simply hand TG Millner back and cancel the sale?
No, the sale of the ground is final and cannot be undone. (The sale to NRRSL was completed in October 2017).
What will this mean for relocation to our new Headquarters
This change will enable us to enhance our plans and accelerate the project. We will have greater flexibility and financial capacity – all of which we will use to build something very special for the future.
Can Eastwood continue to play at TG Millner in the meantime?
Eastwood can continue to play at TG Millner until at least the end of the 2021 season and potentially longer depending on discussions with NRRSL.