21 November 2007

CHELTENHAM SALE DEAL ANNOUNCED

Story By Jason Hickson

The South Australian Jockey Club stands to gain $85 million from the sale and development of Cheltenham Park in a deal announced yesterday.

The SAJC has awarded the development rights to a joint venture between AV Jennings and Urban Pacific for the sale of the racecourse to turn it into housing.

The club will reap $85 million for the land and a possible extra $10 million for housing sales.

Chief executive Steve Ploubidis said the SAJC had committed to adding an extra $3 million a year to metropolitan prizemoney, which equates to $5000 to $6000 more per race.

Ploubidis said the sale was an outstanding result and a historic moment, enabling the industry to retire its debt and use interest payments to pay for the prizemoney increases.

There were many opposed to the sale of the historic racecourse, which was the original base for the late Colin Hayes and has been used since 1880.

But it couldn't be more timely for the South Australian industry which faces prizemoney cuts in the immediate future after reduced distributions following the TVN battle and EI crisis.

Funds from the development will begin to flow to the SAJC from next June.

The sale of Cheltenham does present the SAJC with another problem, though, as racing at Victoria Park proves a political hot-potato.

The state government and Adelaide City Council have been at loggerheads over the upgrading of the dilapidated facilities at the course.

The council, backed by surrounding residents, last week voted against developing a joint racing/motor racing complex.

With Cheltenham gone from February 2009 the SAJC cannot walk away from the leased Victoria Park as it needs two metropolitan courses.