A heated members’ meeting was held on Tuesday evening, July 29, as tensions boiled over between members of the Cyprus Community of NSW and its voluntary administrators from EY Australia, following confirmation that the Community’s Stanmore property had been sold to developer Conquest for $55 million plus GST.
The property, which spans nearly one hectare and includes the Club, car park, and adjacent properties, was sold without a vote of members – a decision the administrators say is legally permitted under the Corporations Act, though they are currently seeking court confirmation in a matter listed for August.
EY Australia’s lead administrator Morgan Kelly said the transaction is the only viable path forward for the Community, which is under voluntary administration and burdened with more than $20 million in debt, including millions in legal costs accrued over years of internal disputes and court proceedings.
But members – many of whom have deep personal and generational ties to the Community – accused EY of bypassing democratic processes and selling the property “from under them.”
Tensions rise over sale
Tensions flared as EY attempted to reassure members that the $55 million sale was the best commercial outcome after receiving and assessing seven offers.
The administrator said Conquest was selected based on strict criteria: an offer above valuation, no development risk, fast debt repayment, and a clean sale structure with an extended settlement period.
EY confirmed that the full $55 million (including GST) would not be immediately available – the final payment is expected by mid-2026 – but stressed that operating funds were secured for the interim.
To safeguard the sale proceeds, EY has proposed the establishment of an independent trust managed by a third-party institution such as Perpetual Trustees or the Commonwealth Bank. The principal would be reserved for the purchase of a new club, while interest income would fund interim operations.
The crowd, packed into the Stanmore club, erupted. “You’ve sold us out,” one woman shouted.
Others demanded to know why previous redevelopment proposals – including a 99-year lease model from developer Platino – were not pursued. EY responded that such offers posed unacceptable financial risk and were not in the club’s best interest.
Members demand to know: where was our say?
A major flashpoint was the lack of a members’ vote on the property sale.
Kelly responded: “I already have that right [to sell the property as an administrator]. That’s already there. The court process is orders confirming that administrator order.”
He said the court application underway is merely to confirm that the Corporations Act overrides the Registered Clubs Act in this situation.
Further dissatisfaction emerged when EY declined to disclose the identities of the seven bidders or the members of the Property Steering Committee.
Kelly insisted the anonymity was necessary to maintain fairness in a competitive bidding process, but some members called the process undemocratic and accused EY of marginalising their input.
Governance questions persist
Much of the anger also centred on the governance process, particularly the absence of elections since the administration began. Many members questioned why a new board had not yet been elected.
Kelly explained that under legal advice, EY could not unilaterally remove or appoint directors during administration, but would enshrine the requirement for board elections into a Deed of Company Arrangement (DOCA) – the next step in the exit from administration.
He committed to elections being held “as soon as practicable” once the DOCA is in place, and added that a draft constitution would be put to members for approval.
Crucially, it was acknowledged that elections had not been held in recent years due to repeated court injunctions filed by disgruntled members, including actions by Dr Con Costa and Ms Dorothy Bassil, which derailed previous meetings and votes.
Fire order deadline looms as club faces imminent closure
The urgency of the sale was underscored by a fire safety order issued by Inner West Council, which requires the Stanmore premises to close by August 30. According to EY, the Community cannot afford the extensive upgrades needed to comply with fire regulations, and thus operations must cease.
Kelly said, “because of that fire order, the clubhouse is no longer fit for purpose… we cannot lawfully keep the premises open past that date.”
The club’s restaurant is already closed, and all items and equipment must be removed within 12 months. Temporary arrangements are in place: the Greek School will move to Petersham, dancing classes to the Lakemba Club, and administrative and community functions may be hosted by Canterbury Leagues Club – though these arrangements are still being finalised.
“These are interim measures,” Kelly said. “The Community is going to have sufficient funds to buy their own premises when they’re ready.”
Financial crisis and legal wrangling
The Community has been under voluntary administration since September 2024, due to insolvency.
The dire state of its finances has been laid bare by EY, who outlined that the Community’s debt had ballooned from $12 million in 2023 to more than $20 million in 2024. This includes loans from mortgage lender Sydney Wyde and Cyprus Capital – a private entity formed to raise funds from members – as well as fees accrued during a prolonged receivership and subsequent legal battles.
To consolidate the debt, EY secured a $17 million loan, which enabled the repayment of previous creditors and covered administration costs. However, the long-running disputes – including injunctions and challenges from Cyprus Capital – added to the financial strain, delaying the administration and further diminishing available funds.
A plea for unity
Amid the conflict, long-time member Ellie Stassi delivered an emotional speech in Greek urging members to put aside factionalism and prioritise unity.
“I feel shame we’ve come to this stage. I never thought this would happen to my beautiful Community,” the 72-year-old said.
“If it weren’t for the administrators doing what they did, in another 10 years the community would have turned into a block of land. Let a new committee be formed and let experienced people come forward. Our ego has destroyed us.”
What’s next?
EY will now proceed with finalising the sale, holding a second creditors’ meeting, and presenting a DOCA to exit administration. If accepted, control will return to the board under supervision, with a mandate to call elections, vote on a new constitution, and oversee the establishment of the trust.
Until then, members remain divided – some hopeful the sale brings a path forward, others bitter at what they see as a loss of agency.
