ILT Commits To $7.5m Reinvestment In Portfolio
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ILT plans to inject $7.5 million into its portfolio of commercial properties over the next 12 months. ILT board members recently approved the substantial capital and project maintenance budget for the 2019-2020 financial year.
Chairman Alan Dennis said reinvesting in its existing businesses was a long-standing focus for the organisation and crucial to its on-going commercial success.
“New projects like The Langlands hotel are exciting but we are also acutely aware of the responsibility we have to ensure all our properties are well-maintained and continue meeting the needs and expectations of our community,” he said.
“This year’s plan again has a focus towards our accommodation properties as we seek to maintain current market positions in the lead up to the new hotel build.”
Chief executive Chris Ramsay said an element of the $7.5m budget was the result of projects deferred or unable to be completed in the last financial year.
“Our target this year is once again ambitious and realistically the full list will likely take through until the next financial year to complete,” he said.
“Depending on the level of works completed, it is likely to have a reasonably significant impact on our profit result for 2019-2020.
“However, the community can be confident it is budgeted to be achieved whilst maintaining our current grant levels.”
The following large scale projects are on the agenda:
- Room refurbishment across all six accommodation properties – $1.475m
- Ascot Park Hotel (including conference room and roof) – $1.197m
- Kelvin Hotel (Level One bar plus carpeting) – $438,000
- Homestead Avenal redevelopment – $1.92m
- Refurbishment of Homestead Avenal is due to occur over the winter months and will continue to have a strong family focus, whilst improving the indoor/outdoor experience.
The balance of $2.47m in work would be shared across ILT’s other businesses and represented “typical” repairs and maintenance predicted for an organisation of its calibre.
“It’s pleasing to see each of the projects underway, albeit at differing stages within the process,” Ramsay said.
Cash flow projections for the new $40m inner-city hotel were predicted based on achieving “very aggressive” capital and maintenance targets.
“Completing this work will ensure we are giving our existing accommodation properties the best chance possible to mitigate the drop in occupancy levels that will happen once The Langlands opens,” Ramsay said.