By Rowan Forster
Pakenham’s most profitable gambling venue has officially been listed on the market, expected to fetch more than $18 million.
The freehold sale of the Cardinia Club, owned by the Pakenham Racing Club, will encompass 1.65 hectares of land, 105 pokie machines, a bistro, dining facility, sports bar and liquor license for 425 patrons.
Pakenham Racing Club will hold an initial 14-year lease worth $1.2 million annually on the site.
It will also include “surplus land” behind the car park, which could be used for further developments.
Pakenham Racing Club CEO Michael Hodge said the decision to enter an expression of interest process to sell the venue was made by the board of directors.
“At the conclusion of the expression of interest stage, the board will weigh up whether it proposes to continue with a potential sale,” he said.
“‘It is about a strategy to be able to free up some cash so we can take advantage of expansion opportunities in the marketplace,” he said.
“We own 600 acres of clear title land at the Pakenham Racecourse, 192 acres of which is zoned for retail, commercial and residential use.
“The club will develop there as the demand sees fit.”
The Cardinia Club was first built by the Pakenham Racing Club 22 years ago.
It turns in approximately $10 million in gaming revenue per year, according to Victorian Commission for Gambling data.
CBRE Hotels’ Scott Callow, who is managing the sale, said it is a huge opportunity for a broad range of buyers.
“We expect we will have interest from not only investment houses that focus specifically on this sector, and high-net-worth individuals, but also people attracted by the somewhat finite number of gaming machines that are in the Victorian market,” he said.
In 2015, Pakenham Racing Club sold another site for the development of a Mercure hotel.
Construction on the building, complete with a conference facility, is expected to begin in late 2018.
Expressions of interest in the Cardinia Club purchase close on 14 June.
