Italo Australian Club may shift if the price isn't right

In September, Capital Hotel Group, responsible for Canberra's Aria Hotel, Avenue Hotel, Clifton Suites on Northbourne and Pavilion on Northbourne, bought the Italo Club site at 78 Franklin Street in Forrest for $5.65 million.

A member, who opposed the sale, raised concerns with The Canberra Times that come April the club, which has endured years of financial turmoil, may have to pay about $100,000 a year in rent to remain in its home of 52 years.

Club president Angelo Damiano said the extended settlement meant the club would trade in the current premises until April 1 when the new owners were due to take over.

The club's preference was to stay put, however he couldn't comment on claims made about future rental costs as negotiations were ongoing, he said.

"If we stay there we will have to pay some rent," Mr Damiano said.

"Any rent makes it harder for the club. It is rent we didn't have to pay before."

Club director Gary Kent said the short-term concerns about the extent of rental costs didn't alter the vision to consolidate and transition to the adjacent Italian cultural centre.

"We do plan to build a new club," he said. "The issue is where to house ourselves for the next year or two."

Mr Kent estimated rent could range from $50,000 to $100,000 a year.

The board had made inquiries about alternative properties in the inner south to determine the best way forward, he said.

"No one likes paying rent. We would much prefer to walk into a brand-new building tomorrow, but the club can afford to pay rent," he said.

"We would not want rent to be too much but we simply haven't got to a detailed stage with the new owner yet."

While the board was diligent about costs, Mr Kent said the club's agreement with Italo Financing meant profits from the $5.6 million sale would be put towards covering overheads such as rent during the transition phase to ensure the Italo Australian Club always had a home in the community.