Debt-ridden ATC on back foot again after buyer pulls out of $70m sale of Franklin Park

The Auckland Trotting Club has taken another blow with news today that the sale of its Franklin Park traiing centre has fallen through.

In a newsletter to members, club president Jamie McKinnon revealed that Oyster Capital had exercised its right, after due diligence, to withdraw from August’s $70 million agreement.

The primary reason given, he said, related to the development yield and cost.

It is the second time that sale of the land has fallen through. In 2024 the Chinese backed property investment company Mount Hope Ltd pulled out of a deal worth $100 million after paying a $10 million deposit.

McKinnon said the club now had several options, including to re-engage with parties who submitted previous offers.

The club could also approach investors in neighbouring properties who might see considerable strategic value in securing some or all of the adjoining land.

“On a positive note, we held a meeting with Westpac today, which was both constructive and reassuring.

“Their opening remark was, “no need to panic, because we aren’t.”

McKinnon said the ATC board had already been preparing a contingency plan which was presented to Westpac.

“I also spoke today with HRNZ Chairman Grant Jarold, and both (ATC lawyer) Graham Harford and I intend to meet with him towards the end of next week.

“While it is naturally disappointing that the current Franklin Park sale will not be going ahead, there is no doubt that the board remains fully committed to finding solutions to reduce debt and to deliver the best possible outcome for our club.

The ATC has a debt of about $80 million from its failed property development and is paying crippling monthly interest fees of $500,000.