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The Hub

The Co-operative’s first goal is to purchase The Hub Castlemaine, at 233 Barker St:

The Opportunity

The first investment the Co-operative is considering is purchase of The Hub, the historical building on the corner of Barker and Templeton Streets in Castlemaine.

The Hub is an iconic building that many people use and benefit from. It has 19 office spaces, a meeting room, a kitchen, café space, and a community garden. It is tenanted by environmental and sustainability organisations and small businesses often missing in
rural towns.

The building has been substantially renovated to include sustainability features including water efficiency, energy saving, renewable energy, and recycled features. Building and pest inspection reports have shown the building is in good condition.

We plan that eventually the Hub will be owned outright by the Co-operative, but we need members’ help to get there. The Co-operative will borrow money from members for the initial purchase. Member-investors who support the purchase can choose an interest payment between 0% and 4% p.a. on funding they contribute for a 5, 10 or 15 year term. At the end of this term, their original amount will be paid back.

All members, regardless of investment will get a vote on:

  • the future of the Hub, and
  • investment of any additional surplus generated by the Hub.

Arrangements with existing tenants will be maintained and they will remain independent of the Co-operative.

We do not want this precious community asset to fall into the hands of a commercial or outside investor. We want it to be community owned for good.

We invite everyone in our community to view the offer disclosure statement, seek financial advice, and join us.

Why Invest in the Hub

We want to invest in the Hub because:

  • It is an important asset to our community that generates community benefits. The Hub was established in 2006 by Heather and Neil Barrett to help tackle climate change locally. It contributes to the community through its’, environmental and sustainability organisations and small businesses, café, and community garden. The Co-operative has also partnered with the Hub Foundation – a charity run out of the Hub (and member group of Friends of the Earth), that funds grassroots action and local projects to tackle climate change. Examples include the community bulk-buy of solar panels (the popular MASH solar) and the YIMBY community composting project.
  • It is a functional operating business and has been for over a decade. This allows us to confidently design the investment. Our draft budget was prepared using existing information about occupancy rates, rents, and expenses. We are also confident we understand the contingencies we have built in for repairs, etc.
  • It is in an excellent location: It is close to the centre of town, walkable to other locations and the train station.
  • There is a real risk of losing the existing community benefits of the Hub. It is possible that a commercial developer could purchase it and remodel it for a different business purpose, or raise rents to cover commercial property management costs, and/or develop property on the community garden site.

Even small investments will help.

How Much Can I Invest

The Co-operative plans to raise capital by offering debentures.

Debentures are a type of loan which pay a fixed rate interest to members. This is in accordance with the Co-operative’s non-profit status. In addition,members who purchase debentures to fund the Co-operative’s projects have an incentive to ensure a stable and sustainable business but no incentive to further maximise profit extraction.

Only members of the Co-operative may subscribe for the debentures.

Minimum investment is $500, maximum is $500,000.

Members who purchase debentures will:

  • Ensure the future sustainability and impact of the Hub in the community.
  • Be paid interest on their debenture each year. Members can choose 0%, 1%, 2%, 3% or 4% per annum.
  • Have their initial investment amount repaid at the end of the term. Members can choose a 5, 10, or 15 year term. There are target allocations for the shortest and longest terms, to ensure the Co-operative can meet expected repayment obligations.

The financial modelling used to determine our debentures can be seen in
section 6 of our Business Plan available below.

The funds invested will cover purchase costs and the costs of management of the Hub (including insurance, maintenance, etc).

Over time, surpluses additional to interest will be used to:

  • Maintain a reserve for future maintenance
  • Build a reserve for paying out members post expiry of debenture
  • Build funds for future community investments of social value.

The details of the investment are provided in our disclosure statement. Please read it, seek financial advice, and join us.

FAQs and Risks

Please refer to the Hub FAQ page.

The Disclosure Statement also contains an attachment Risk Register.

How do I invest?

  1. Become a Co-operative member.
  2. Read the Disclosure Statement and seek financial advice regarding your situation.
  3. Apply for debentures by returning the form attached to the Disclosure Statement, or here online.
  4. If your application is accepted, you’ll be asked to pay a 10% deposit.
  5. If the fundraising is successful, you’ll be asked to pay the remaining 90% within 60 days. If it is not successful, all 10% deposits will be returned.

More Information

Some photos on this page are from the 2023 Cantwell Property listing for the Hub.