Global Edition

US investment opportunities for European golf operators

8.26am 30th May 2008 - Property

The buying power of the GB Pound and the Euro versus the US Dollar is extremely strong from a historical perspective. “An investor purchasing an American golf course will realize a return on investment once the dollar regains strength,” says Jeff Davis of US golf property specialists, Fairway Advisors. “This return is in addition to the value they may add from improving operations.”

By way of examples Mr Davis cites two courses located in the area of Dallas, Texas, Oakridge Country Club and The Shores Country Club. The first is available at a guide price which is said to be ‘substantially below replacement cost’ while The Shores is subject to an attractive ground lease.

Oakridge Country Club is located in Garland, Texas just 15 minutes from downtown Dallas and features 18 holes of championship golf designed by Jack Kidwell & Michael Hurdzan. The course features a variety of challenging holes with meticulously maintained fairways and manicured greens. The 6,516-yard, par 71 course is a delight to play for golfers of all skill levels. Scenic terrain, tight fairways, and the meandering ‘Duck Creek’ combine to offer a beautiful and memorable golf experience.

A driving range with grass tees, a large practice putting green and a chipping area with a practice bunker provide golfers the ability to hone their game. The 13,000 square foot clubhouse features a full service dining room, a fully stocked pro shop, offices and lockers. Oakridge can accommodate banquets and weddings with up to 300 guests. Seven lighted tennis courts and junior Olympic pool round out the family friendly amenities offered at Oakridge.

“Oakridge offers several value drivers which enhance its appeal as an investment,” says Jeff Davis. “Foremost, Oakridge is a private non-equity club without a membership cap. The current membership could be doubled based upon the current member play at the course. In 2007 the existing members and guests recorded 24,369 rounds – far below capacity for a club in a year round market. Each additional new member will also provide ancillary income in the form of food, beverage and merchandise sales.

“In addition, ownership has focused on selling prepaid multi-year memberships. The vast majority of current members are approaching re-enrollment which creates an opportunity to capitalize on additional sales or convert to a higher priced annual program. The upside in potential in new membership sales, retention of existing roll-over members and their ancillary revenues are key elements in this unique investment opportunity.”
Oakridge Country Club

The Shores Country Club features a championship Ralph Plummer designed 18 hole golf course nestled on the shores of beautiful Lake Ray Hubbard just 20 minutes from downtown Dallas. Built in the late ‘70’s to include a housing community, The Shores has much to offer and the community is still expanding in and around the golf course.

The Shores Country Club offers several different types of memberships with the focus on family, golf and activities. Clinics for beginning and junior golfers are offered and during the summer months, camps for children centering on golf, tennis and swimming are available.

A four tiered driving range with 20 grass tees per tier and a practice green provide golfers the ability to hone their game. The 8,000 square foot clubhouse has a fitness center and the main dining room has a seating capacity of 200 overlooking the golf course and Lake Ray Hubbard. Eight lighted tennis courts and three swimming pools round out the family friendly amenities at The Shore Country Club.

“The Shores is subject to an attractive ground lease,” says Mr Davis. “The lease payment to the City of Rockwall was $30,000 in 2006. The lease expires in 2040 and has two 10 year options.”

The Shores

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