Drive Shack completes sale of 11 golf courses for $85.2 million

Drive Shack

Drive Shack completes sale of 11 golf courses for $85.2 million

Golf

Drive Shack completes sale of 11 golf courses for $85.2 million

By

Drive Shack closed 2018 by completing the sale of 11 golf properties for approximately $85.2 million in a major step of its transformation into golf entertainment and leisure entity.

Drive Shack opened its first venue in Orlando earlier this year as a direct competitor to Topgolf in the golf “eater-tainment” sector,

“This is a massive step forward in our strategy to monetize the portfolio of owned courses” said Ken May, Drive Shack Inc. CEO, in a release. “We continue to move in the right direction with American Golf, focusing on optimizing and growing our leased and managed courses.”

Drive Shack plans to spend as much as $300 million building entertainment facilities around the country.

The company has sold 12 of its 26 of its traditional golf properties and plans to eventually sell them all and generate $175 million.

Earlier this year, Martin Kaufmann of Golfweek visited Topgolf and Drive Shack in Orlando and offered his thoughts on the two:

That brings me to the final takeaway from the evening: Drive Shack can provide customers with a golf product that is comparable to Topgolf’s. If my anecdotal experience is any indication, where Drive Shack will need to close the gap is in the lucrative food-and-beverage category. In visits to several Topgolf locations around the country, it’s been evident that the facilities are community hangouts – places for locals to eat, drink, socialize and perhaps even hit a few golf balls. It’s extraordinary when one considers that more than 13 million consumers, many of them nongolfers, annually spend hours racking up large bills at Topgolf facilities.

The 11 golf courses sold were owned and operated by Drive Shack’s American Golf subsidiary. They are in California, Oregon, Idaho and Georgia.

They include: Canyon Oaks Country Club in Chico, Calif.; El Camino Country Club in Oceanside,Calif.; Monterey Country Club in Palm Desert, Calif.; Oakhurst Country Club in Clayton,Calif.; Oregon Golf Club in West Linn, Ore.; Palm Valley Country Club in Palm Desert, Calif.; Plantation Country Club in Garden City, Idaho; Seascape Golf Club in Aptos, Calif.; Sunset Hills Country Club in Thousand Oaks, Calif.; The Trophy Club of Apalachee in Dacula, Ga. and the Wood Ranch Golf Club in Simi Valley,Calif.

The buyers were not divulged by Drive Shack but American Golf will continue to manage eight of the sold courses. The net proceeds from the sales were used to help prepay $102 million in outstanding debt.

In November, May joined Drive Shack as its CEO, a role he held at Topgolf. May oversaw the opening of 24 golf and entertainment venues in his four years at Topgolf.

Drive Shack has announced plans to build a golf entertainment venue in Randall’s Island Park in New York and hopes to break ground on a new three-story range in 2020.

Latest

More Golfweek
Home