The funding of Fossetts

[Yorkshire Blue]

Anyone knows how Ron Martin proposes to do this?

 

[Davros]

he's gonna get back in that bobsleigh?? :D

 

[Spaceman Spiff]

Wasnt he saving with Farepak? :(

 

[Jam_Man]

Anyone knows how Ron Martin proposes to do this?

The redevlopment of Roots Hall is going to go a long way, plus the sale of the flats at Fossetts.

500 flats x £120,000 = £60,000,000 on its own. (although i hope there wont be 400 at Roots Hall)

Obviously theres lots of big costs involved in actually building everything but when you consider the amount involved in just the flats you can see how much money will be changing hands.

 

[Ricey]

I want to buy a flat on FF!

 

[Smiffy]

Long term leases on the retail units at Fossetts Farm, will bring in many millions too...

 

[Cricko2]

Anyone knows how Ron Martin proposes to do this?

CSJ is paying for everything.......

 

[Fred]

he's gonna get back in that bobsleigh?? :D

Its a little known fact that the first installment was paid on Wednesday by Jeff King and RM.

http://images.google.co.uk/imgres?i...Ron+Martin%22+aux&svnum=100&hl=en&newwindow=1

 

[Jam_Man]

I want to buy a flat on FF!

Really ?

Have you not read the objectors ?

Bad traffic, yobs hanging round the shops, ruined green belt, lots of noise, football hooligans defecating in your doorstep ?

 

[Yorkshire Blue]

£60m is quite a lot of money, but its not as straight forward as that.

It will cost a lot of money to build the new stadium, the developments around the stadium and Roots Hall.

The flats at Roots Hall will be the last to be constructed (construction work can only take place after the new stadium had been completed), and there is no guarantee that planning permission will be granted or that all the flats will be occupied.

You are going to be needing some pretty substantial bridging finance for the next 3 years (at a minimum if everything runs according to plan - 18 months to build new stadium, then 18 months to build new flats). Say construction costs are £30,000,000 you need to find someone willing to loan you that money - you are looking at paying over £1.5m a year in interest, for at least 3 years.

These are far from insurmountable problems, but I'd like to know that Ron Martin has worked out how to finance this. I'd like to know who is taking the risk, what exactly is Southend United's involvement and who is going to own the new stadium.

 

[Spaceman Spiff]

Given that he's a property developer, Yorkshire Blue, I'm sure he's just as aware as you are how the numbers stack up. In fact I'll stick my neck out and say he's probably more aware!

In which case, I very much doubt he would have gone to all this trouble only to think "****, how am I going to pay for all this?!"

Given that he will have thought of this, I'm afraid those kind of details will not be in an article on the Official Site. You'll have to wait for the accounts to see them as is standard (and most definately the advisable) practice.

 

[Smiffy]

So what was the projected cost of the FF development, £30m?

 

[Cricko2]

£60m is quite a lot of money, but its not as straight forward as that.

It will cost a lot of money to build the new stadium, the developments around the stadium and Roots Hall.

The flats at Roots Hall will be the last to be constructed (construction work can only take place after the new stadium had been completed), and there is no guarantee that planning permission will be granted or that all the flats will be occupied.

You are going to be needing some pretty substantial bridging finance for the next 3 years (at a minimum if everything runs according to plan - 18 months to build new stadium, then 18 months to build new flats). Say construction costs are £30,000,000 you need to find someone willing to loan you that money - you are looking at paying over £1.5m a year in interest, for at least 3 years.

These are far from insurmountable problems, but I'd like to know that Ron Martin has worked out how to finance this. I'd like to know who is taking the risk, what exactly is Southend United's involvement and who is going to own the new stadium.

Having spoken to Ron briefly on the way out of the Council chambers on Wednesday he assured me the development would go ahead regardless of having to review the Roots Hall project. Of course it proves another hurdle for the long term plans, but he is an astute business man im sure he has contingences planned everywhere as would be natural on such a vast overall plan .

 

[Yorkshire Blue]

Given that he's a property developer, Yorkshire Blue, I'm sure he's just as aware as you are how the numbers stack up. In fact I'll stick my neck out and say he's probably more aware!

In which case, I very much doubt he would have gone to all this trouble only to think "****, how am I going to pay for all this?!".

Actually you'd be surprised. I'm working on a matter at the moment which was due to complete last Friday, on which they hadn't thought about how to finance it until Thursday! I'm sure Ron has given this a lot of thought, but the answer impacts on the future of the club.

Given that he will have thought of this, I'm afraid those kind of details will not be in an article on the Official Site. You'll have to wait for the accounts to see them as is standard (and most definately the advisable) practice

I'm not expecting the ins and the outs to be revealed, as these will be commercially sensitive. But the questions I raised are reasonable questions which directly effect the future of the club.

1. Has finance been arranged? If not, when is it anticipated that this will be finalised.

2. Does the club take on the debt/risk?

3. Will the club own the stadium?
If not, under what arrangement will the club play there?
If they will, how is this proposed to be done?

 

[Jam_Man]

£60m is quite a lot of money, but its not as straight forward as that.

It will cost a lot of money to build the new stadium, the developments around the stadium and Roots Hall.

.

Indeed. Im sure Ron has it all planned. Im really hoping that the RH development gets a major toning down as well.

The point I was trying to make was that we arent going to be going in to huge debt as RH will generate a decent amount of money, and thats before the Fossetts Farm part.

 

[Cricko2]

Although i for one have every faith in Ron ....I'm sure there are many unanswered questions to be resolved...There will be an element of walking before we run , but the foundations i am sure are in place...Everything takes time to fall into place, i hardly think there would of been outside commitment from financial sources before the planning was given the go ahead. Ron will be working 24/7 to obtain this from whatever source or long term stable financial institution he involves. .....HAVE FAITH ......the future is in good hands. ......Every seed takes awhile to grow ...but you have to plant it first.

 

[Jam_Man]

At the end of the day Ron Martin knows what he is doing and wont be putting us millions of pounds into debt. He has made sure the new stadium is someting to take the club forward and not weigh us down.

 

[Somerset Ex-TTB]

Bad traffic, yobs hanging round the shops, ruined green belt, lots of noise, football hooligans defecating in your doorstep ?

Funny you should say that, a Sunderland fan got arrested earleir in the season for relieving himself in the doorway of the house next to the Fish & Chippy, whilst I was waiting on the corner by the lights.

Funny thing was, whilst the old bill were dealing with him, one of their horses left some brown stuff on said doorstep!

 

[Jam_Man]

Haha nice.

 

[Spaceman Spiff]

Funny you should say that, a Sunderland fan got arrested earleir in the season for relieving himself in the doorway of the house next to the Fish & Chippy, whilst I was waiting on the corner by the lights.

Funny thing was, whilst the old bill were dealing with him, one of their horses left some brown stuff on said doorstep!

:hilarious: did they arrest the horse (or more correctly, its rider)? Or did they clean the mess up? I doubt it...