Clubhaus Plc, the leading European golf course owner operator, this morning announces the acquisition of Tutzing Golf Course in Munich for a total consideration of £2.2 million. This will be the group’s fourth golf facility in Germany and brings to 19 the total number owned and operated within the group. With its facilities near Hamburg, Frankfurt, Stuttgart and now Munich, the Company becomes the largest operator of high quality membership courses in Germany.
The purchase price was DM 6.0 million (£2.2 million) which has been funded from the Group’s cash resources and from German bank facilities.
The 18 hole Tutzing golf course is located 15 minutes from Munich’s city centre and is situated in one of the most affluent areas of Germany near the Bavarian lakeside. The club was established as a prestigious members’ club over 15 years ago and currently has more than 450 members. It has been profitable in each of the last five years.
The previous management of Tutzing had franchised out the golf professional’s shop, driving range and food and beverage business. The operation of these revenue centres will be brought under the direct control of Clubhaus, allowing economies of scale and the Group’s expertise to be exploited to greater effect in Germany. Furthermore there is significant scope to increase the membership at Tutzing, which will capitalise on the facility’s operational gearing, as well as developing new areas of revenue generation such as function and corporate business.
This acquisition demonstrates Clubhaus’ continuing focus on expansion in Germany, where there remain several opportunities to acquire quality assets at a substantial discount to replacement cost and to the prices currently being demanded in the UK.
“When we announced the acquisition of El Bosque Golf and Country Club in Valencia, Spain on 9th October 1998,” comments Charlie Parker, Managing Director of Clubhaus, “I stated that as well as driving the organic growth of the Group we would continue to seek out quality facilities at the right price in Europe. Although prices for such quality assets in the UK were becoming too high, there were good opportunities in continental Europe. Tutzing represents the successful conversion of one such opportunity and we are delighted to have acquired this quality and very well located profitable golf course for a reasonable price.”