FPDSavills announce that Peterstone Golf Club, the 18-hole par 72 golf course near Newport in South Wales has been sold. The purchase price is undisclosed but the guide price was £1.5m.
The Golf Club opened in 1990 and features an 18-hole landscaped course on the Wentlooge levels adjoining the River Severn Estuary. There are a number of natural water hazards and the course is considered to be “challenging”. The clubhouse includes a restaurant for up to 75 covers and is licensed for civil marriages.
The property has been run by managers acting on behalf of receivers. Turnover has risen in each of the last three years and reached £700,766 in the year ended 31st March 1998. It is considered that a proprietary operator would expect to return a margin of between 25-30% on turnover, equating to a net operating profit in the region of £175,000 – £200,000 per year.
The South Wales economy, particularly around Cardiff and Newport, has enjoyed substantial growth and inward investment in recent years. The Welsh Development Agency estimates that South Wales alone has attracted £4.2 billion of inward investment between 1992 and 1997. Local development schemes, particularly relevant to Peterstone Golf Club, are the construction of a new components factory by the Korean electronics company LG (Lucky Goldstar) at Cleppa Park, which is approximately 2 Â½
miles away, and a new factory at Wentlooge for Acer, the Taiwanese computer company which plans to create 1000 jobs.