Ailing Fraternity Club Selling Its Car Park

Illawarra Mercury

Tuesday March 18, 2008

By BRETT COX

THE car park at the financially ailing Fraternity Club at Fairy Meadow has been put on the market.

The club's board and management have decided to sell off the car park, which at 6161sqm makes up almost one-fifth of the club's total land holdings.

Last month the Mercury reported that the club, which went into voluntary administration in November 2005, was seeking a new loan to pay back $2.2 million lent to them by Ilbene Pty Ltd, a company formed by two investors from the Italian community and a group of club members called Friends of Fraternity.

The loan had conditions, including requirements that board members have business acumen and academic qualifications. The board has recently been seeking a new loan to pay Ilbene back and thus free themselves of the conditions.

The Mercury understands they have taken out the new loan, worth $2.5 million, with Queensland company Fast Fix Finance with interest payable at 5 per cent per month. Ilbene has had its money repaid.

Club president Eddy Trevisanut and CEO Albert Palamara were not available for comment yesterday, but the Mercury has seen an open letter written by Mr Trevisanut posted in the club's foyer explaining to members why he believes it was in the club's interest to take out the new loan.

Real estate agent Leigh Stewart, of Ray White Phipps and Stewart, said the car park would be sold in seven separate lots and that interest had already been shown by medium and large developers, as well as retirement villages and private hospitals.

© 2008 Illawarra Mercury

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