Unconstitutional or not, who cares?
Last night CEO of MotorSport New Zealand, Simon Baker sent an update on MotorSport New Zealand happenings. Below is Baker’s statement with regard to the recent Sale of the MotorSport House.
Sale of MotorSport House
You might have seen or heard recently for the first time that MotorSport House on Hutt Road has been sold as directed by our board. I understand that this is important news for our members, so I want to provide a quick overview. In summary:
- The idea of selling the building was originally floated at the 2017 AGM and raised again in 2018 and 2019.
- At the 2019 AGM Finance Workshop, the discussion continued and the minutes show meeting attendees were comfortable with the strategic direction and finances.
- There were many drivers behind selling the building and finding a more appropriate home and which have been well communicated. They include; not being able to justify having a building the size of 69 Hutt Road, especially post The MotorSport Company.
- Previous management had not been able to sublet the building as per the boards instructions and the real estate agent of the time assessed that it was unlikely MotorSport NZ would find sub tenants without significant cash investment in altering the buildings configuration.
- At the August board meeting the board reaffirmed its intention to sell the building and management subsequently listed it with Bayleys Real Estate.
- MotorSport NZ has had multiple valuations conducted on the property over the years but it was agreed to list through auction to secure the best possible price as recommended by our chosen real estate agent.
- Some members expressed concerns to board members that the constitutional process was not being followed for the sale of the building, so the board instructed management to change to a tender listing to enable more flexibility in the sale price should the sale price be so high that it would then require membership approval.
- COVID interrupted the tender process and a buyer was not immediately found.
- The board agreed for the building to remain on the market as recommended by Bayleys and an offer as forthcoming.
- We presented this offer to the board who subsequently authorised management to execute the sale and purchase agreement.
We have leased a new office in Paraparaumu (Kapiti Road), but due to COVID restrictions, we’re not able to move in just yet. Our team is still working remotely due to COVID-19 but we’re hoping to be in the building as soon as the Government lifts working restrictions.
The benefits of moving to Kapiti include savings on building and employment costs and a more convenient location for the vast majority of staff. The building is about a quarter of the size of Hutt Road and is far more suitable for us. We do not need to be near any CBD or central location as by nature our membership is spread across the country, but who knows maybe our smallest club (Kapiti Car Club) may now grow in membership!
If you have any questions please feel free to call me and speak to me in person. I’m happy to answer any questions – and keeping in mind that the transaction has not yet settled, this will be on the 30th of June.