Kirribilli Club warns of closure, seeks member donations after venue rent hike

A prime waterfront club in one of Sydney’s ritziest suburbs has called for its members to chip in $2000 each to help buy the building from its landlords in response to rising rental costs.

The Kirribilli Club is at risk of closing at its prime waterfront location.

A prime waterfront club in one of Sydney’s ritziest suburbs has called for its members to chip in $2000 each to help buy the building in response to a lease dispute with the venue’s landlords.

The Kirribilli Club has sent a mass email to members warning the venue is at risk of having to relocate in response to a new rental agreement that according to board members will cost the club an extra $2 million a year.

The email – carrying the headline “we need your help” – asks members of their “serious” financial assistance to help save the venue.

The plea comes after private property firm Stadia Capital bought the waterfront Lavender Bay club building in 2022 for $22.855 million, Core Logic data shows.

Stadia Capital managing director Scott Staniforth told The Daily Telegraph the $2 million figure outlined by the club board was “inaccurate” and that the club’s rent has increased 3 per cent in line with the current lease agreement.

The club has operated since the 1940s.

Kirribilli Club president and chair Lukas Bendt, in the email to members, said the rental fee coupled with $1 million in miscellaneous building expenses has resulted in club board members deciding not to pursue the option of renewing the current lease from November 2024.

The board has instead set itself a lofty fundraising target to buy the property from Stadia Capital or to cover the cost of relocating to another site.

The club has requested members to buy a “debenture certificate” for $2000 to assist in purchasing the building.

“Based on the success and response from our membership pledge, we will be issuing debenture certificates in favour of your financial investment,” the email states.

A photo of the vista from the venue.

“We request your serious assistance as this is your club, and the Kirribilli Debenture opportunity is the best solution for our longevity and continued existence going forward.”

Kirribilli resident and local North Sydney councillor Jilly Gibson said it would be “a great loss” to see the venue close but questioned whether the club will have the capacity to buy the prime waterfront block back from its owners.

“It’s been battling over the years like so many clubs have and it’s terribly sad to see,” she said.

Trent Zimmerman has backed the club

“It’s hard to say what will happen – a lot of the club members aren’t wealthy so $2000 in a cost of living crisis is a lot of money to come up with.

“But it’s a proactive idea and it would be great to see if there are locals around with deep pockets”

Mr Staniforth said Stadia Capital was “sympathetic to the club’s situation” however has “not contemplated a sale” of the club “at this stage”.

“The plight of clubs broadly has not been positive with many clubs in a situation where they need to rethink their business model,” he said.

“As for all clubs, the Kirribilli Club is no doubt feeling the effects of the impact of Covid, high inflation across food and beverage, wages, insurances and the loss of their restaurant operator.

“The negative social sentiments towards poker machines has also seen a significant decline in the club’s revenue.”

Former local North Sydney Federal MP and nearby resident Trent Zimmerman – a former member of the club – has publicly backed the club.

“This is an ex-services club which has supported veterans for many decades and it would be a very sad loss for our community if the club wasn’t able to continue,” he said.

“It has also been a community hub for the lower north shore and it would be wonderful if there were some white knight to ride to the club’s rescue.”

Latest publicly available financial report shows the club – which was founded in 1943 – recorded more than $6.1 million in income and revenue and $480,896 in total comprehensive profit in the 2021 financial year.