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Western Australia links golf course for sale by tender

9.09am 23rd June 2009 - Property

The Cut golf complex, south of Mandurah in Western Australia, is up for sale by tender.

The course is currently rated by Golf Digest Australia as the best in WA and Number 16 in Australia. As a links course with half the holes overlooking the Ocean, The Cut has always been a “must play” course and surely one of the last to be built in the primary sand dunes of a metropolitan location.

The golf course is also home to approximately 500 cardholding members who enjoy an extraordinary social scene and offer any prospective owners a loyal following. See www.the-cut.com.au for more details.

The term of the current mortgage has expired and has triggered the need for a sale, although alternative means of repaying creditors are also under consideration. The mortgagee is owed approximately $3.6m whereas the course was originally purchased some four years ago for a consolidated price of over $10m.

During its tenure, the owner Vive Holdings Ltd, has overseen extensions to the clubhouse, extensions to the liquor licence, the recent appointment of the international Troon Golf management group as full-time consultants and the contracting of a number of tournaments including the high-profile WA PGA.  Vive has also greatly increased the course’s exposure in South East Asia.

Apart from shareholders and secured creditors, there are a number of unsecured creditors to be settled from the proceeds of the sale.

John Pilley, a director of Vive Holdings, said: “We may yet obtain private funds to settle these issues before a sale, but we have a duty to shareholders and creditors to obtain the best sale price if this is inevitable. We also need to look after our staff and club members.”

Michael Kelly, the largest shareholder and largest creditor said: “I have supported the club financially over the last four years whilst it gradually improved its cash flows. I am bitterly disappointed that when we were about to break even, the credit crunch hit us all, and at a time when I am unable to provide further funds.

“Any new owner will have purchased a truly iconic golf club at a very opportunistic time.”

The assets of The Cut are currently owned by Vive Golf Pty Ltd (who holds the freehold) and Hamsted Pty Ltd, who manage the club and own the leaseholds. These two companies are 100% owned by Vive Holdings Limited.

The invitation to tender document seen by GBN.com indicates that tenders are required by 3rd July. Interested parties should contact any of the directors listed:-
John Pilley  jpilleywa@bigpond.com
Will Brander will@abundant.com.au
Robert Kelly rkelly@orbiteronline.co.uk , or
Michael Kelly mkelly@foxwood.me.uk

       

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