FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
MEMORANDUM OF UNDERSTANDING ISSUE B, 06 JULY 2021 DRAFT MISSION To create world class, high yielding, unique and interesting food and beverage facilities within the Sydney Inner North Shore target area. The Facilities will represent a high standard of fitout and a very high standard of service, in terms of food and drink quality, and strong focus on customer service and satisfaction. The Facilities will represent a new standard for the Sydney Market, in terms of attention to detail and service standards, where staff have a focus on the customer’s experience as the purpose of the facility operation, where: — Polite manners, good conduct by staff and problem-solving attitudes provide the customer a truly VIP experience, and — The customer feels valued, acknowledged and recognised as part of the facility brand and operations. TARGET MARKET The Inner North Shore Market is diverse. It contains a range of high net worth individuals and families all at different stages of their life and career. The one thing this market has in common as an intent and a desire to socialise and interact in exclusive, high quality settings, for purpose of experience of expanding friendships, growing social and personal networks, or undertaking important informal meetings and interactions for business and political purposes. This represents a unique market pitch for the Facility; it is a place that is not focussed on the highest gross yield from sale of product (food or beverage), which then requires an open door policy, unlimited guest numbers, expansive opening times and mid to low level quality fitout designs. This mindset of commercialising the social space works against the feeling of exclusivity that would do well on the north shore, and also it is this lack of facilities that espouse exclusivity that represents both a gap in the market and the business opportunity for this Joint Venture. JOINT VENTURE PURPOSE The Joint Venture is potentially funded with a $2m allocation for purposes set out below. Through discussion amongst parties to the joint venture operation, it was decided that rather than focus on one or a very limited number of facilities, it would be better to spread the risk of the operation across multiple venues, and invite further joint venture partners and operators at later phases of development of each facility. This allows for existing operators to also participate in the funding model and utilise investment funds to improve operations of their existing venues. The Joint Venture will undertake all design, consultation and consent related activities, to provide to investors, complete certainty on the facility investment product and operation. This model therefore also removes the contingent risk for larger scale operators, where they can become involved in a project once it has reached a level of certainty over its implementation and operation in line with business case objectives. KEY TASKS FOR JOINT VENTURE OPERATIONS The Joint Venture will be incorporated as a Pty. Ltd. Company and be able to earn business income and report for taxation purposes. Relevant Articles of Association and Shareholding will be set up and included to the Company Registration. Legal Advice will be obtained as to the best Company Arrangement. Accounting and Book-keeping services will be allocated to the Project. The Joint Venture may also choose to operate a Human Resource component, where it identifies and manages labour resource into the various facilities as operations commence and continue. The Joint Venture will also undertake research into the social demographic outlined above to substantiate the target market demographic and particulars. A consultant team will be identified to suit likely Joint Venture Operations in the project initiation and start-up phase outlined below. The Joint Venture will also identify and appoint a Brand Manager to manage all Brand Definition operations across these same phases, who will take responsibility for Brand Quality targets. The Joint Venture will also identify and engage a Business Development Manager, who will take responsibility for identifying, inviting and entreating suitable investors to individual facility investment opportunities, as well as identifying existing businesses in the target market area that are suitable for expansion of operations and investment, and creating and maintaining a CRM database that is inclusive for investors and key staff as part of each facility offer. The Joint Venture may determine to appoint a Human Resource Manager, who will take responsibility for identifying suitable staff for each Facility, provide outline tools for staff training and operational culture, as well as briefing teams on customer experience and Facility Brand aspirations.
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
The Joint Venture will set up and maintain a website that provides limited commercial information as well as information on current and future investment opportunities. The Website will act as a database for the various Facility investment opportunities and will be a key tool in any face to face meetings or presentations to possible investor clients, as well as providing unique and identifiable email addresses for team participants. The Joint Venture will be as open book as possible regarding these investment opportunities and encourage transparency and accountability at all stages of its operations. Joint Venture participants will maintain their own insurances. JOINT VENTURE OPERATIONS The purpose of this joint venture is as follows: — Identify suitable lease- or land-holding opportunities, that have renovation or improvement potential that can go on to meet the high standards of the brand. — Define the relevant Business Case and Operational Model for the Facility, including a full cut on operating hours, staff costs, likely turnovers, preliminary pricing — Provide a complete Design Team for the Concept Design Works outlined below, including: Business Case Manager, Architect, Acoustic Engineer, Services and Structure Consultants, Heritage Advice if Required, Town Planner, Facilities Planner, Brand Manager and Advisor — Define Brand objectives per Facility — Define Food and Beverage design in line with Brand Objectives — Create interesting, unique and workable concept designs for the Facility — Consider, review and implement as part of the design concept, all building service upgrade requirements, and agree these upgrade components with the Landlord — Consider, review and implement all operational objectives, in terms of consents for operating hours and management of acoustic issues — Complete all necessary fire, structure, hydraulic and mechanical ventilation reviews so as to provide a complete scope and cost for the Project — Provide preliminary Build Costs for the Project Concept and implement these as overheads to the Facility Operational Model — Ensure the Facility operational Model is complete in terms of all business income opportunities as part of the Facility Design and likely visitation, as well as accounting for all relevant costs for implementing and running the Facility — Obtain security over the lease- or land-holding, to allow for investment into design and approvals necessary to give security over the proposed facility operation — Obtain those same approvals from the Landlord and / or Local Authority — Identify and create executive teams for each facility — Invite and submit Project Concept Packages, with relevant Approvals and Consents, to target Joint Venture Partners and Investors — Obtain and Secure investment — Manage investment funds to operationalise each Facility INVESTMENT VEHICLE The Joint Venture will take advice as to how best establish and define operational ownership of each venue. Possibly separate ownership packages are created, to minimise risk to the Joint Venture for a single Facility not performing, or an unworkable Joint Venture / investor Relationship developing, or any other aspect deemed as not suitable to the Joint Venture partnership. Detail? JOINT VENTURE PARTNERSHIP OWNERS PARTNER 01 MATTHEW WILLIAMS Owner, Matt Williams Architects 19 Dumbarton Street, McMahons Point NSW 2060 Mob: 0410232939 Email: mnwarch@gmail.com
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
JOINT VENTURE EXECUTIVE TEAM BUSINESS CASE MANAGER Detail? BUSINESS DEVELOPMENT MANAGER Detail? HUMAN RESOURCE MANAGER Detail? ACCOUNTS Brad Seeto, Bramelle Partners Pty Ltd Detail? LEGAL Paul Etherington, Owner, Etheringtons Solicitors Detail? BRAND MANAGER Tayla Kay, Owner, Nest Creative Detail? WEBSITE Zita Sauro, Owner, Vital Resource JOINT VENTURE CONSULTANT TEAM FOOD Marco La Perna, Head Chef Detail? BEVERAGE Carlos Maestre, Manager, Dan Murphys, Brookvale Detail? STRUCTURE AND SERVICES Eamonn Madden, Director, Partridges Detail? ACOUSTICS Matthew Harrison, Owner, Pulse Acoustics Detail? TOWN PLANNING Andrew Cowan, Director, Willowtree Detail? BUILDER Luther Keningale, Owner, Mustard Projects Detail?
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
TARGET FACILITIES OPTIONS Address: Current Use: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Access: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: Current Use: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies:
Views / Aspect: Access: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
136 & 138 Blues Point Road, McMahons Point NSW 2060 Retail Facility being Refurbished
Courtyard, Street Frontage High End Retail and Restaurants Quality Street address Bus and Train, Car, On Foot Prominent Street Address, Corner Site High Quality, Federation Style
Lavendra Restaurant 5 Walker Street, Lavender Bay Restaurant Owned by Operator, Investor Needed NA Basic Kitchen and Fitout Until 10pm, Liquor License None current, could be negotiated Building is uniquely situated in a prime position but has no adjacent facilities, building is located on a key local and tourist walking route, as well as being situated on the main road entry to McMahons Point, Blues Point and Waverton Astonishing and unrestricted City, Bridge and Opera House Views, Garden Aspects Bus, Train, Car, On Foot Street presence could be improved Street presentation could be improved Masonry appears to have good integrity. Inspect by Structure / Geotech required to determine adequacy for additional floors. New basement egress required. Single exist from future upper storeys will need to be fire engineered.
Position, Surrounding Gardens and Paths Preliminary meetings with Council already completed regarding additional storeys and Council may be favourable to the opportunity Owner would be JV Partner
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
Address: Current Use:
80 Mount Street, North Sydney TAB Sports Betting, includes additional storey above ground floor, exits from ground floor on south and north sides
RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas:
Poor quality fitout Ordinary operating hours Terrace Areas existing to Mount Street, possibility for external area to north to Spring Street Central to North Sydney, premium location No views, internal aspect Easy access Very visible from Mount Street, north Sydney Plaza, Spring Street Contained in existing low grade office building. Possible strong street presence depending on fitout design.
Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical:
Assume is structurally sound. Good. Assume is adequate. Assume is available. On-floor plant with local exhausts. Mechanical systems could be problematic. Assume some is available on site. No. Staff car parks only, number tbc. ‘Sunken’ feel, three street frontages. Location is good. Limited. Depends on upgrade concepts for street frontages and north terrace.
Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: Current Use: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility:
139 Blues Point Road, McMahon’s Point NSW Restaurant – Moorish Blue, Licensed
Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks:
Quality Building but currently has a subdued appearance
Comment on Landlord Suitability:
Private Ownership, Occupant is Tenant Not currently on market Restaurant Fitout Lunchtime and Evenings until 9.30pm Footpath Dining, Rear Courtyard Key location on Blues Point Road City Views from rear, quality neighbourhood views on street Bus, Train, On Foot, Limited Parking (No on site) Prominent Street Location but underutilised street presence
No on site
Historic Building, Federation Charm Perfect Location for a quality VIP Bar Experience North Sydney Council, local Neighbours for Acoustic Issues Unknown, currently has a very long term tenant
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: Current Use: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Cnr. Ave Road and Ballantyne Street, Mosman Currently Occupied, TBC
Ordinary Café Breakfast and Lunch Service Footpath Adjacency but no current seats In key location as part of Mosman, adjacent small laneway with quality vegetation (Tall Palms typical for Mosman Area) Local Neighbourhpood Views Limited – Local On Foot, Car, Uber, Taxi Good street presence on prominent corner Good quality with upgrade potential
Corner Site, Two Storey
75 Lower Parriwi Road, Manly Manly Yacht Club, with low frequency usage for a Yacht Club
Generous eternal boat hardstand areas with immediate water frontage Manly 16ft Skiff Sailing Club (very busy, operating at capacity with high prices and high consumption) Excellent views north and west to North Harbour, Cabbage Leaf Bay and Manly Wharf. Ferry, On Foot, Limited on street car parking Street visibility is good but street is low use, visible from ferry but in the distance Good but street has low frequency usage Looks in reasonable condition Looks adequate Timber building, could need significant upgrade Good storage opportunities On street only Key waterside location, surrounding hardstand areas, legacy value, embedded to sailing activities Joint Venture arrangement with the Manly Yacht Club Building already exists in a unique location, could not be built again Negotiating with Club could be tedious
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Cnr. Cathedral and Crown Street, Surry Hills Currently unoccupied and seeking a tenant
Limited Existing Restaurants and bars along Crown Street Street Views, Limited Good for Bus, Train, On Foot, No Car parking Good visibility from Street Good presentation to Street, Quality Building
None on site Small, boutique facility in a good location, option to expand upstairs
43 Spofforth Street, Mosman Private. MWA Client NA current 2x $1000/wk 2x Ground Floor tenancies Limited footpath areas possibly Adjacent good quality shops and cafes in premium but underutilised location Street Views Bus, Car, On Foot (good local customer base) Good street presence Reasonable quality façade, could be improved and made good
Good street presence, option for large two storey bar and restaurant fit-out STCA Car parking an issue Good Landlord, possible JV Partner
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Sub Base Platypus, High Street, Kirribilli ADFA Agreeable as is a recently completed conversion
Generous outside hardstands and interesting laneways Near to north Sydney commercial core, embedded to North Sydney and Kirribilli catchment, growing number of co-locating businesses within the Base Water Views to Neutral Harbour Ferry, Generous Public Car Park as part of Complex Limited to street but prominent within development Limited street presence
Generous public car park forms part of Base Heritage Character, Laneways, Waterside location
Cnr Military Road and Young Street, Nuetral Bay
Fronts recently completed Laneway and small pedestrian mall New Nnuretral Bay Retail Core, near Oaks Local Street View On main bus route, some public on street car parks, no train Very good street presence, corner site fronting Military Road (carrying North Shore and Northern Beaches Traffic) Good street presentation, trees, awning
Limited on street nearby, car park station at adjacent Coles and Woolworths Heritage Character, Laneway
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Address: RP / DP: Ownership: Agent: Rental Rate: Terms: Inclusions (Current): Operating Hours (Current): External Areas: Adjacencies: Views / Aspect: Public Transport: Visibility: Street Presentation: Plans (Current) PDF & DWG: Survey (Current): Structural Adequacy: Egress: Fire Safety: Wet Services: Mechanical: Storage: Car Parking: Design Features: Notes on Upgrade Opportunities: Consent Risks: Comment on Landlord Suitability:
Berry Street Power Station (Decommissioned)
Footpath Edges Very good proximity to North Sydney Commercial Spaces Interesting street aspect from internal spaces, through heritage colonnade Very well serviced Very good street presence Excellent street presentation
None, but car parking stations nearby Heritage Character, Laneway, On Brand Heritage re-use
Post Office, North Sydney
Footpath Edges Very good proximity to North Sydney Commercial Spaces Interesting street aspect from internal spaces, through heritage colonnade Very well serviced Very good street presence Excellent street presentation
None, but car parking stations nearby Heritage Character, Laneway, On Brand Heritage re-use
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
JOINT VENTURE EXECUTIVE CVS JV Manager – Partner 01 / Matthew Williams Business Manager – ? Business Development – ? HR - ? Brand – Tayla Websites – Zita Food – Marco la Perna Beverage – Carlos Maestre Structure and Services – Eamonn Madden Acoustics – Matthew Harrison Planning – Andrew Cowan Builder – Luther Keningale
FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
JOINT VENTURE ADVISORY CONTACT DETAILS C/o Business Development Manager ???