Sydney, 27 June 2009

Dear Friends and Members of Alliance Française de Sydney,

In a few weeks we will move back to our original address at 257 Clarence Street, and settle into the 4½ levels of the superb ALLIANCE FRANÇAISE CENTRE designed by the renowned Harry Seidler. In the beginning we will be the only occupiers of this 14 levels building, as only the Alliance Française de Sydney floors will be ready. It is a new chapter in the life of your Alliance which is opening. This life will be different from our previous life when at Clarence Street, and also from the life we had during the construction time in George Street, and we will have to adapt.

The Building Committee responsible for the project comprising Bruce Bland as project leader, Phillip de Boos-Smith and the signatory Joel Hakim, has been working hard for several years, with periods of whole weeks if not months of full time dedication to achieve this realisation. We are sure that it will please the majority of our members, and will correspond to your expectations. There will be of course those nostalgic of the old Grand Café with its Parisian bistro features. There will also be the grumpy critics whom these kinds of achievement always bring, but it is normal. We expect it and we will try to take into account the feasible ones according to our financial capabilities which have been stretched to the maximum sustainable extent.

You may find hereafter some information on the financial aspects of the project which those of you who were not present at the AGM may not be familiar with.

1) This project has only been possible, because some thirty years ago a visionary President, Phillip de Boos-Smith (who has been with us throughout the present project), succeeded in acquiring the previous Clarence Street premises where we have been operating for more than a quarter of a century. This was done with the only help of a bank loan, and without this asset we would have never been able to realise the present project.

2) Since 2004, year when we started to work on this project, your Alliance has been managed in the most rigorous way, allowing the building up of a reserve to finance the DA (Development Application), and the very expensive George Street rent.

3) The original Clarence Street 4 levels property was brought to the project and in exchange we were granted 3 ½ levels of a brand new building. This area being insufficient, we committed to acquire one level more in order to have the 4 ½ levels needed. To finance this acquisition and the fit-out for the whole property, we have contracted a heavy loan for $2.4 million.

In summary, the total cost of the Alliance Française de Sydney building project is in round figures a $10 million. The project include the 3½ levels obtained in exchange of our original property, the acquisition of an extra level, the rent of the George Street premises for 18 months, and of course, the ancillary costs of architect, lawyers, consultants, and the DA.
(See table below)
To be safe a $2.4million loan has been negotiated and the service of this loan in interest and capital reimbursement is substantially below the rent we paid in George Street, but we will have to continue managing the Alliance with the same rigour, and make all efforts to increase the number of students. The number of increased classrooms, and the quality of our teaching should allow us, with your help, to face our commitments.

Do not hesitate to spread the word and encourage as many as possible of your friends and relations to enrol and enjoy the pleasure of learning French at the Alliance Française de Sydney.

With our sincere thanks for your support, dear Friends and Members of the Alliance Française de Sydney,

Joel Hakim
Chairman of the Board of Directors