Sale query on Willows

Suggestion price well below par

QUESTIONS have been raised over the sale of Willows Golf Resort after suggestions it sold for almost half the price of a previous transaction.

The issue has been raised in the first creditors committee meeting of the course’s previous owner, SPC and Co Pty Ltd.

SPC and Co was placed into administration on July 11 and into the hands of insolvency experts John Vardy and Jason Porter of SV Partners.

According to the minutes of the creditors meeting held in Sydney on July 20, Marc Ryckmans, representing creditor and Sydney barrister Ventry Gray, queried a $ 1 million sale price said to have been paid for the course shortly before SPC and Co was placed into administration.

The minutes state Mr Ryckmans believed the property had been purchased for about $ 1.7 million in 2014 and was concerned that it had now been sold under value.

Further, the minutes say Mr Vardy, as chairman of the meeting, acknowledged Mr Ryckmans’ comments and noted that this would be the subject of further investigation.

Mr Vardy also noted that from his understanding the purchase price was paid via the transfer of mortgages and a caveat rather than a cash transfer.

Mr Vardy would further investigate whether there was reasonable consideration on the sale and the validity of the mortgages and caveat, the minutes say.

Other issues to be investigated included the claim by Mr Ventry against the company, a claim against a former lessee, WGM Nominees Pty Ltd, said to owe SPC and Co about $ 150,000 in outstanding rent and a dispute with the current lessee which may give rise to a claim for outstanding rent.

In its Willows Golf Club News, posted on the course’s website on July 16, the Willows Country Club and JT Golf Team announced the buyer of the course as Willows Country Club Pty Ltd.

The news item says that all current memberships are being honoured by the new owners, that the majority of staff and operations are being retained and that works and improvements to the course had already commenced.

Company records show Sydney man Costas Frangakis owns Willows Country Club.

Mr Vardy, a SPC and Co director and Mr Frangakis could not be contacted for comment.

Club professional Josh Tindale said the new owners were making sure the golf club was operating but declined to comment further.