War memorial Naval Club sale ‘is sacrilege’
Profits from £27.5m sale of Mayfair townhouse may be shared among members instead of going to charity
SINCE the end of the Second World War the Naval Club at 38 Hill Street, Mayfair, provided a relaxing venue for those with maritime connections to meet and socialise.
The grand Georgian town house was designated as a national war memorial to commemorate thousands of brave Naval volunteers who paid the ultimate price.
So when the property was sold last November, reportedly to a Saudi billionaire who plans to convert it into a private residence, there was a palpable sense of loss within Naval circles.
But that regret has since turned to anger with questions being raised over the handling of the £27.5 million sale and concern over the way the proceeds have been distributed.
Critics say there was no consultation with past Royal Naval Volunteer Reserve members and argue the money ought to have been distributed among maritime charities in accordance with wishes of the club’s founders in 1946.
Instead, at a meeting in April last year, the rules were changed, meaning a large portion of the profits from the sale can now be distributed between the existing 860 members.
The 27-bedroom property, in one of Mayfair’s smartest locations, dates back to 1748 and at one stage belonged to the family of William Pitt the Younger, the 19th-century prime minister.
Atl the outbreak of the Second World War, it was requisitioned by the Auxiliary Territorial Service.
And in 1946, 38 Hill Street was purchased by the RNVR Officers’ Association, with help from the Astor family, order to provide a social venue and home from home for members.
At one point, the private club boasted more than 15,000 members – including Lord Mountbatten– and it regularly hosted members of the Royal family.
But last year with membership falling and income dwindling in the wake of the pandemic, the difficult decision was made by the Naval Club Council to go into liquidation and sell the freehold.
The remaining 860 members of the Naval Club were transferred to the Army and Navy Club on Pall Mall – as was the RNVR Roll of Honour, listing the names of those who died defending Britain at sea.
But critics now claim crucial decisions about the future of the club were made during the “fog of the pandemic” with little wider consultation.
A Memorandum of Association, drafted when the RNVR Club was founded, stated that in the event of a liquidation any surplus proceeds would be given to like-minded organisations or maritime charities.
But in a vote last April the Memorandum of Association was amended to alter that provision.
While around £6.5million has been distributed to maritime charities, the existing members will now enjoy a windfall from the surplus.
Sub Lt (A) Michael Bonham Cozens of the RNVR told The Sunday Telegraph the Naval Club Council had confounded the intentions of the Club’s founders.
He went on: “Instead of sale proceeds being distributed to like-minded institutions or appropriate charities, as was originally intended, the lion’s share is being paid as a windfall to one generation of members.”
Lt Commander Malcolm Graves from the RNR said that he believed the sale of the building amounted to “sacrilege”.
He said: “I was outraged when I discovered the Naval Club’s Mayfair freehold was being sold, without reference to the Royal Naval Reserve and related UK maritime organisations. I felt, since the Naval Club was dedicated to the memory of Royal Naval Voluntary Reserve Officers, it was a sacrilege, especially as the very building itself is a war memorial to the 6,200 RNVR personnel who were lost during the Second World War.
“There has been scant regard given to the importance of the war memorial at 38 Hill Street, which was intended as a meeting place for future generations of RNVR, RNR and all those sharing a similar ethos. It all feels very wrong.”
A spokesman for the liquidators said: “The proceeds from the sale of the club’s former premises, in accordance with resolutions passed in April 2021 by over 99 per cent of the membership, have gone towards integration within another club and donations to various charities connected to the RNVR.
“The remaining funds will be distributed to the members in due course.
“The appointed liquidators have received a number of queries relating to the winding-up.
“However these queries are from non-members of RNVR who have no legitimate interest in the winding-up process.”
‘There has been scant regard given to the importance of the war memorial at Hill Street. It all feels very wrong’