Latest rink update
- Thread starter Wannabe2
- Start date
I'd love to hear what the "developers" of the new Rink think about the current situation.
OK....so I am a potential developer of a new Ice Rink that has dual pads and 3000 seats. What I want to do is attract an investor to buy said rink for investment purposes. Investment of circa £16 million with hopefully a 10% yield....so needs to get back 1.6 million a year from tenants etc.
Investor knows he needs to run a complex fit for the public and all ice sports but needs an "anchor" tenant. Perhaps an EIHL professional Ice Hockey Team with an established fan base? Yeah...that would work.
Hmmm...Investor now thinks.....Let's have a look at what is on offer in Cardiff in terms of professional ice hockey. Oops!
I'd be looking at a completely new organisation. Just my humble opinion.
Discuss...?????
OK....so I am a potential developer of a new Ice Rink that has dual pads and 3000 seats. What I want to do is attract an investor to buy said rink for investment purposes. Investment of circa £16 million with hopefully a 10% yield....so needs to get back 1.6 million a year from tenants etc.
Investor knows he needs to run a complex fit for the public and all ice sports but needs an "anchor" tenant. Perhaps an EIHL professional Ice Hockey Team with an established fan base? Yeah...that would work.
Hmmm...Investor now thinks.....Let's have a look at what is on offer in Cardiff in terms of professional ice hockey. Oops!
I'd be looking at a completely new organisation. Just my humble opinion.
Discuss...?????
No idea Finny....the point is that you will not build something that you can't get a return on, whether you want that return yourself or you sell to an investor who will then want a return on their investment.
As for it being a can that should not be opened...I can't agree with that. So much spin from PR has been about the new rink. Due to start in January 2014 I think is the last tweet I saw.
Just keeps being pushed further back. I want it to happen but to my mind the sums don't add up unless the developers have got a favorable valuation to borrow the capital to build it in the first place.
That may involve running it themselves (do Greenbank have knowledge of running ice rinks?) or they sell to a company that do who in turn will want evidence of income or potential income from public use and an EIHL team.
My thoughts at the moment is that Greenbank will not be able to find the finance to build the rink and the reason being is that they, or any potential investor, will not see a return on their massive investment or purchase.
Again, this is just my opinion. But if you had £16 million to spend....would you buy an Ice Rink? And would you buy one with a tenant being the current Cardiff Devils; the owner of which has already owned and folded two teams in one season.
Those decisions may well have been the correct ones at the time, but to a potential investor in a project like the new Cardiff Ice Arena....well....I would be very cautious.
As for it being a can that should not be opened...I can't agree with that. So much spin from PR has been about the new rink. Due to start in January 2014 I think is the last tweet I saw.
Just keeps being pushed further back. I want it to happen but to my mind the sums don't add up unless the developers have got a favorable valuation to borrow the capital to build it in the first place.
That may involve running it themselves (do Greenbank have knowledge of running ice rinks?) or they sell to a company that do who in turn will want evidence of income or potential income from public use and an EIHL team.
My thoughts at the moment is that Greenbank will not be able to find the finance to build the rink and the reason being is that they, or any potential investor, will not see a return on their massive investment or purchase.
Again, this is just my opinion. But if you had £16 million to spend....would you buy an Ice Rink? And would you buy one with a tenant being the current Cardiff Devils; the owner of which has already owned and folded two teams in one season.
Those decisions may well have been the correct ones at the time, but to a potential investor in a project like the new Cardiff Ice Arena....well....I would be very cautious.
As far as I'm aware, Greenbank will be financing the new arena through the sale of the homes they are building now, and through the sale of the retail, hotels, etc in the part after the arena.
I'm pretty sure they will be running the rink themselves and that is why Chris Hartrey is already working for them. There are others who know more than me, but I don't think we need to worry about the arena build being affected by the latest devils developments.
I'm pretty sure they will be running the rink themselves and that is why Chris Hartrey is already working for them. There are others who know more than me, but I don't think we need to worry about the arena build being affected by the latest devils developments.
That is a hell of a lot of "foward funding" and a lot of houses will need to be sold before there will be enough to pay for the new arena.
I know they were looking for a valuation of the rink to secure additional funding to build it. But to be fair that is normal practice for property development.
My point is that developers don't have a pot of money to just build this kind of thing. They need to borrow it in the first place and that means being able to justify borrowing the money in the first place.
Potential lenders will look at the big picture.
Like I said...I want this to happen. Just the current rubbish going on will not help...even if it does not hinder.
I know they were looking for a valuation of the rink to secure additional funding to build it. But to be fair that is normal practice for property development.
My point is that developers don't have a pot of money to just build this kind of thing. They need to borrow it in the first place and that means being able to justify borrowing the money in the first place.
Potential lenders will look at the big picture.
Like I said...I want this to happen. Just the current rubbish going on will not help...even if it does not hinder.
D
Update from the Devils' site:
( http://www.cardiffdevils.com/news/devils-news/ice-arena-wales-update/ )
( http://www.cardiffdevils.com/news/devils-news/ice-arena-wales-update/ )
Away will be the same as home.
Other changing rooms will be 32m sq. I imagine Cardiff junior and Cardiff based rec teams will use the larger away changing rooms for their home games at least that is what happened in the WNIR.
This is all going off the original plans that the council approved. The changing rooms etc are on the 'Ground Level' in the link below.
http://planning.cardiff.gov.uk/onli...iveTab=documents&keyVal=_CARDIFF_DCAPR_102095
Other changing rooms will be 32m sq. I imagine Cardiff junior and Cardiff based rec teams will use the larger away changing rooms for their home games at least that is what happened in the WNIR.
This is all going off the original plans that the council approved. The changing rooms etc are on the 'Ground Level' in the link below.
http://planning.cardiff.gov.uk/onli...iveTab=documents&keyVal=_CARDIFF_DCAPR_102095
