Drive Shack Inc. Closes Sale on 11 of Its American Golf Properties (12/27/18)
National Golf Company Locks in Capital to Further Growth & Expansion Plans
NEW YORK--(BUSINESS WIRE)--Drive Shack Inc. (“Drive Shack” or the “Company”) announced today the completion of the sales of 11 golf properties owned and operated by its American Golf subsidiaries. Generating proceeds of approximately $82.5 million, the courses sold include Canyon Oaks Country Club in Chico, CA; El Camino Country Club in Oceanside, CA; Monterey Country Club in Palm Desert, CA; Oakhurst Country Club in Clayton, CA; Oregon Golf Club in West Linn, OR; Palm Valley Country Club in Palm Desert, CA; Plantation Country Club in Garden City, ID; Seascape Golf Club in Aptos, CA; Sunset Hills Country Club in Thousand Oaks, CA; The Trophy Club of Apalachee in Dacula, GA; and Wood Ranch Golf Club in Simi Valley, CA. The net proceeds from the sales were used, together with cash on hand, to prepay $102 million in outstanding debt.
American Golf will remain the management company for each of the golf properties that were sold, except for Apalachee, Oakhurst and Seascape courses.
“This is a massive step forward in our strategy to monetize the portfolio of owned courses” said Ken May, Drive Shack Inc. CEO. “We continue to move in the right direction with American Golf, focusing on optimizing and growing our leased and managed courses.”
The company announced its decision to sell all 26 of its American Golf owned properties earlier this year and expects to generate nearly $175 million in capital from the sales. To date, 12 courses have been sold. American Golf will continue to operate its leased and managed properties and grow the portfolio through the addition of new management agreements.
ABOUT DRIVE SHACK INC.
Drive Shack Inc. (NYSE:DS) is a publicly traded owner and operator of golf-related leisure and entertainment businesses. The company’s subsidiaries include American Golf, its traditional golf enterprise that operates private, resort and public golf courses nationwide, and DriveShack, a golf and entertainment company that features the latest in golf and gaming technology with venues offering signature interactive range games, virtual course play, restaurant and bar, and classic arcade game center. Drive Shack opened its first venue in Orlando, April 2018 and has several locations opening in 2019 including Raleigh, NC; Richmond, VA and West Palm Beach, FL. For more information visit driveshack.com. https://www.businesswire.com/news/home/20181227005065/en/Drive-Shack-Closes-Sale-11-American-Golf