Slow play on golf club sale

An expressions-of-interest process finished six weeks ago and a short list of local and interstate buyers are now crunching the numbers.

Sydney-based firm Mackay Goodwin was appointed as receiver in December after the existing ownership group – Destination Leisure Holdings (DLH) – defaulted on a loan facility to boutique lender Central Real Capital (CRC).

Mackay Goodwin director Edwin Narayan confirmed the sale campaign remained ongoing.

“There has been a lot of interest, and the interested parties are going through their due diligence” he said.

“I cannot disclose anything further at the moment.”

CBRE are overseeing the sale and agent Scott Callow said that prospective buyers were conducting “substantive due diligence”.

“CBRE, in conjunction with Central Real Capital, have approached the sale campaign in a respectful manner understanding that any new owner must have regard to the community engagement and facilities that form an integral part of the region infrastructure and social services,” he said in a statement.

“Part of that process is to ensure the suitability of a preferred potential buyer.

“It is expected that this process will continue for the coming 4-6 weeks and a further announcement will be made at that time.

“Commitment to the project and the continued services is a fundamental aspect to the continued negotiations.”

Mr Callow said no international buyers were among the remaining parties.

It is understood the Sharp Group, owners of Curlewis Golf Club and an array of hospitality venues including Jack Rabbit Winery, expressed interest early but have since dropped out of the race.

Director Lyndsay Sharp confirmed the business was not part of the due diligence process.

Golf members were not informed of the receivership and only became aware of the sale in late April following an article in the Addy, multiple sources said.

One member said that when he sought further information from staff, he was told they were also unaware.

In the following days, the club issued an email to members in an effort to allay concern.

Additionally, a bunch of sweeteners were offered to those who paid their 2024/25 dues in full by June 30.

This included bar credit up to $300, golf lessons and guest passes.

CRC chief executive Tony Denny has provided a personal guarantee of members’ subscriptions.

“I want to reassure you that your renewal of you golf membership is safe and should there be any disruption to your ability to play golf at The Sands due to any sale, I will personally refund any unused membership subscriptions that have been paid in full by June 30,” he wrote in a signed letter.

DLH purchased the 76.5ha property out of administration in February 2021 for $12.8m, well below the $23m it sold for in 2017.

It then signed Belgravia Leisure to a 10-year management contract but this ceased just 18 months later.

Paul Fielding of DLH said he was thankful that all parties were working together in the best interest of members and staff.

Across all operations, the site employs approximately 130 staff.