Clubhaus PLC (“Clubhaus”), has announced the acquisition of the business and assets of Chartham Park Golf and Country Club, East Grinstead, West Sussex for £2.9 million.
The consideration will comprise £1.4 million in cash and the assumption and subsequent refinancing of £1.5 million of bank debt. The cash element of the consideration will be met from Clubhaus’ existing cash resources and bank facilities.
In addition there is an existing planning permission for the construction of a further 28,000 sq. ft. of buildings to house a leisure club development, in line with those that Clubhaus has completed successfully at seven of its UK sites. Chartham Park will be developed along the lines of the Clubhaus country club model, taking advantage of the site’s excellent location and existing high quality infrastructure.
Chartham Park has been acquired from European Golf LLC for a total consideration of £2.9 million comprising £1.4 million in cash and the assumption and subsequent refinancing of £1.5 million of bank debt. The cash element of the consideration will be met from Clubhaus’ existing cash resources and bank facilities.
In the twelve-month period ended 31st December 2000, the club generated £0.3 million of operating profit from £1.2 million of turnover. Net assets equating to the consideration were £2.9 million at 31 December 2000. These numbers are un-audited and have been extracted from the management accounts of the business for the twelve months ended 31st December 2000.
Chartham Park currently has approximately 300 golf only members. It is located close to a number of other clubs in the Clubhaus portfolio, including Nizels and Dukes Dene. This clustering is favoured by Clubhaus because it provides cross-selling opportunities and the potential to exploit economies of scale.
Chartham Park Country Club will fit with the Clubhaus model, which has country clubs now open at The Tytherington, Castle Royle, Mentmore, Mapledurham, Meyrick Park, The Essex and Nizels. Further country club facilities are now under construction or in the planning stage at five other UK Clubhaus clubs.
Chartham Park will have a range of facilities that include 18 hole golf course, health and fitness facilities with indoor swimming-pool, gym and aerobics studio, extensive food and beverage and conference facilities, crèche, nursery and child care, health and beauty facilities, teaching facilities and retail centre.
Commenting on the acquisition, Charlie Parker, managing director of Clubhaus, said, “We are delighted to announce the acquisition of Chartham Park which fits perfectly with our current country club operations, both in terms of location and our golf and health and fitness model. We are looking forward to commencing the development and creating a new and exciting country club with the very latest modern facilities. The success of our country club concept gives us confidence that Chartham Park will become one of the most successful clubs in the south of England. We welcome the existing members of Chartham Park to the Clubhaus network and extend to them the wide range of member benefits that exist within the Clubhaus Group. With a total membership of over 40,000 we continue to extend our lead as Europe’s leading golf and fitness operator. “
Clubhaus will be announcing its results for the three months ended 31 March 2001 during the week commencing 14 May 2001.
Clubhaus PLC www.clubhaus.com