Border club unveils $25 million apartment complex amid gambling crackdown

The club's leadership said the new venture aimed to future proof the organisation as state and federal governments impose stricter regulations on poker machines.

After more than five years of planning, the club now hopes to submit a development application with Albury Council by the end of the month.

The proposed five-storey, 80-unit complex will occupy the space at 652 to 660 Dean Street.

The Commercial Club-owned buildings, currently leased by Saludos Spanish restaurant, Level One Cellars and Thai Puka restaurant, will be demolished to make way for the project.

General manager Jeff Duck said if all went smoothly with the council, the club hoped to have the enterprise, which would be leased by Punthill Apartment Hotels, up and running by Christmas 2026.

"When we say apartments, it'll be motel-style accommodation with a longer stay plan," he said.

"Punthill will lease the property off us, and then they will pay us rent on an annual basis."

Chairman Graeme Edgar said the apartments would cater for corporate workers visiting the city.

"It's been shown that there's a significant need for good quality accommodation in Albury," he said.

"Punthill's model is based on the corporate dollar and not two nights' accommodation, but two weeks.

"They'll be good-sized apartments with a full-size fridge, desk and computer access, so you're not living in a tiny little box while you're here for a while."

Punthill runs 23 accommodation sites across Sydney, Melbourne, Brisbane and Maitland in the Hunter Valley.

With cashless gaming trials under way and calls to reduce the number of poker machines echoing throughout the state, NSW clubs are bracing for revenue cuts.

Mr Edgar said if new restrictions were enforced without finding another income stream, the Commercial Club would face financial pressure.

"You'd have to be hiding under a rock to not know that the state and federal governments ... have got knives in the back of clubs and pubs with gaming revenue," he said.

"When the (cashless gaming) becomes law, and it will, they'll come here and take some of our entitlements.

"Then the revenue we draw from gaming, which is significant, is going to be significantly reduced as well.

"We have to future proof this place. By doing this style of apartment and having a tenant give us a guaranteed income every 12 months, it's future proofing the club and its viability with an alternate income stream."

Mr Duck said the club hoped to have the apartment complex built and paid off within 10 years.

"We did some investigating around what was the best model from the club's perspective, and the board felt this was the more secure model, which gave us regular income on an annual basis," he said.

"With the finances, we believe we can borrow the money, but we don't need to borrow all of it.

"Once it's paid off and we own the facility, this secures an alternate source of income for our future."