Billionaire hotelier Jerry Schwartz has expressed interest in purchasing Wentworth Falls Country Club after hearing they had inquired about selling off some of their poker machine entitlements.
Independent real estate agent David Turner, who specialises in brokering pubs and hotels in NSW confirmed to the Gazette a request for a quote was made pre-Christmas from the club to sell a band of three machines. He provided a quote of $60,000 but has not heard any more from the club. He also provided initial verbal advice about how to sell the machines and stressed that the board and members should be informed before a sell-off.
Dr Schwartz said he would like club members to know he wanted to buy the club for “a million dollars”, service any debt and consolidate it with Leura Golf Club giving him a “36 hole course instead of 18 holes”.
“It’s only five minutes from us. I thought I could be the white horse in this situation” explaining he had helped turn around the Leura Golf Club’s precarious financial situation after buying the Fairmont and was still looking after their ongoing expenses and about to make improvements like adding a putt putt [miniature golf] course.
“A few years ago Leura was losing $250,000 a year ... it’s probably losing $50,000 to $100,000 but now we’ve got a D/A [development application] in to extend the gaming room to an outdoor room.”
Dr Schwartz said he had made an appeal to the golf club’s president Stuart Liddell in an email on December 6 last year “to be aware that selling the "crown jewels" is the beginning of the end”.
“Once your limited income from poker machines is reduced, then your cashflow income gets WORSE, and the quicker before you need to sell more entitlements, and then BINGO, there is insolvency. The only remaining equity is the building itself, just enough to pay off the liquidator,” he wrote.
“If I am to be involved with WF golf club, it needs to have the poker machines. I beseech that you DO NOT yet sell off any licences … I am coming to the Mountains for Christmas … and am happy to have a discussion with your good self/board or before if this is urgent.”
Dr Schwartz thought the club was selling six of the 24 gaming machines. He said he wanted to alert members because he was genuinely concerned “that suddenly they can lose their club”.
Wentworth Falls Country Club sold off several parcels of land in recent years for residential housing after consulting with their members.
The club’s general manager Joe Di Pietrantonio refused to make a comment on the record to the Gazette, other than to say they had “a new caterer for the brasserie which had been closed for a short period for the changeover”.
Mr Di Pietrantonio said it was up to president Stuart Liddell to reply to the Gazette. Mr Liddell recently stood down from Blue Mountains Council as acting general manager. Mr Liddell did not make himself available to the Gazette.
