Whanganui’s Club Metro close to sale agreement and clearance of debts

Club Metro was formed following the amalgamation of the RSA and Cosmopolitan Club in 2018. Photo / NZME

Club Metro‘s significant debts could finally be taken care of as the sale of its Whanganui building nears completion.

The 2149sq m Ridgway St property went on the market in August.

Club president Michael Neho said a conditional sale agreement had now been signed off. The club would be able to stay on the premises for the time being through a leaseback agreement.

“There was some solid interest from three parties but we went with another group,” Neho said.

“It was definitely the best deal for the members.”

The conditional sale and new lease were agreed at a club meeting on Thursday, with a final deal to be presented at a meeting early next month, Neho said.

The buyer and length of the lease could not be revealed yet but the lease was “not quite as long as we hoped for”.

“There will be a fair time period and, overall, the deal gets us out of complete debt and allows us to move forward.

“You can’t please everybody. There were some disappointed members but we think maintaining the integrity of the club is the most important thing.”

Club Metro was formed following the amalgamation of the RSA and Cosmopolitan Club in 2018.

At the time, the Cosmopolitan Club had debts of about $660,000 from a loan for refurbishments but the sale of the RSA’s building on St Hill St did little to bring it down.

The St Hill St property is now The Barracks Sports Bar.

Speaking to the Chronicle in August 2024, Neho said the interest rate on the loan had risen to 11%, which was “really killing us”.

He said this week the deal, if finalised, would leave “a bit left over to play around with” after the debts were paid.

The Club Metro facility went on the market in August 2024.

“Our job is to ensure that the history of the Cosmopolitan Club continues. Unfortunately, it probably won’t be [in] this facility but we will have the ability to continue trading.

“We’ll co-opt a business manager-type person to the committee so we’ve got expertise to lead us through the next phase.”

New Zealand Premier John Ballance founded The Wanganui Cosmopolitan Club in March 1893, one month before he died aged 54.

Its first location was on Campbell Pl (now Rutland St).

The club has been at its Ridgway St premises since 1979.

Neho said Club Metro was looking at three potential sites for relocation but any decision would go through its committee and members.

“We have to restyle ourselves and look at a younger population for membership — all the strategic things you think about to ensure continuity.

“There are around 800 members on the books but only a bunch — around 30 — who keep the club running.”

It had always been known as “a Friday night club” but that needed to change in the future, he said.

“We hope it becomes a big night, every night, but some serious planning needs to take place.

“After we get through this sale, we’ll sit down with members and talk about options and possibilities.”

The next club meeting is at the Ridgway St premises at 10am on March 2.

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.