October 2026 Update
Project Status
The Board and management are undertaking a comprehensive review of the Heart of Forestville redevelopment to assess how the project can best meet the Club’s long-term needs in the current economic and property environment.
Since receiving Development Approval, further work on construction costs, financing and projected retirement living returns has highlighted significant challenges for the redevelopment in its present form.
Why the project is being reviewed
Three areas require particular consideration:
Economic conditions. Inflationary pressures and elevated construction costs affect the capital required to deliver the redevelopment, while interest rates and lending conditions influence both the cost and availability of finance. For a project of this scale, relatively modest changes in these assumptions can materially affect the financial outcome and the level of risk carried by the Club.
Geopolitical uncertainty. International conflicts, trade tensions and disruptions to energy supplies and shipping can affect fuel prices, imported building materials and equipment, and delivery schedules. These factors can make it more difficult to obtain dependable cost estimates and confidently plan a construction program extending over several years.
Property market conditions. The retirement living component depends on achievable entry prices and the rate at which residents take up the completed units. Many prospective residents would fund their move through the sale of their existing home. Changes in buyer confidence, property values or the time required to sell those homes can therefore affect both demand and the timing of funds received by the project.
These factors must be assessed together. Higher delivery and financing costs cannot simply be assumed to be offset by higher retirement living prices. Similarly, a slower rate of resident take-up could extend the financing period and place additional pressure on the project’s cash flow. The review is testing the project’s financial resilience under a range of market conditions, with particular attention to protecting the Club’s ongoing operations and financial position.
Options under review
Management is examining a range of options, including:
The project’s scale and design.
The construction approach, staging and timing.
Potential opportunities arising from changes to planning controls.
The purpose of this work is to establish a sound basis for the Board’s decisions. Each option will be considered against its financial implications, delivery risks and long-term benefits to members.
Our objectives remain unchanged
Our underlying objectives remain to:
Strengthen the Club’s financial future.
Reduce reliance on gaming revenue.
Improve facilities for members and the wider community.
Retain Club ownership of our land and buildings.
The review will help determine how best to pursue those objectives.
Keeping members and the community informed
This work will take time. Until the available options have been sufficiently assessed, it would be premature to confirm the final form of the redevelopment or a construction timetable.
We recognise members’ interest in the project and appreciate your patience while this detailed assessment continues. We will continue to keep members informed as the review progresses and provide a further substantive update once the Board has assessed the available options.
Thank you for your continued support.
The Board of Directors
Forestville RSL Club Ltd