Members do battle over Beachwood sale
DURBAN Country Club, faced with mounting debt, is to consider selling the Beachwood Golf course.
Yesterday chief executive Pascale van Maris said the club did not have sufficient membership to sustain two golf courses.
“It is a magnificent club and an icon in Durban. The members are pulling together to make sure the club goes forward. We hope that common sense prevails. We have worked extremely hard to find sustainable solutions,” she said.
Membership over the past five years has fallen from 6 500 to 3 300, which has been attributed to “the world wide trend, a change of demographics in Durban, the weakening economy and uncertainty in respect of the financial future of the club”, according to the notice sent to members.
The Durban Country Club Trust had recapitalised the club with a loan of R45 million for three years on an interest free basis which expired in March 2015.
According to the notice, earlier in the year a property committee was formed by the trust in conjunction with the club’s board, which recommended that 2.4 hectares of the Beachwood property be developed to pay the loan and enhance the property in general.
Two hotel groups expressed interest. The club saw discussions as “promising and if successful, could have achieved the club’s objectives of retaining the Beachwood course, ensuring its sustainability and repaying the debt”.
Some members objected to the development and appealed against the town planning approval, which had been given. The appeal has blocked the development.
“The club faces becoming commercially insolvent and being unable to sign off its annual financial statements at the end of the year if drastic action is not taken,” states the notice.
An alternative body of members has voiced its opposition to the sale of the Beachwood property and sent out a “rescue plan” to members this week that includes compulsory contributions.
This states: “It is clear from the current financial position that the club will never be able to trade out of its debt under the current circumstances and cannot bear any debt in any future model”. The group opposes selling the club’s major assets and says “two golf courses can be kept”.
The rescue plan proposes a compulsory contribution by members to boost the club’s coffers, saying “it is necessary for members to raise the funds”, while it states the medium term intention is “to continue to pursue commercially aligned development proposals for the DCC and Beachwood, such as a boutique hotel and iconic tower, which can leverage the facilities and boost membership”, while other options suggested outsourcing non-sporting facilities and secure income from branding rights.
“The board’s vision is to realise sufficient funds from the property to pay back all the debt and to be able to create a ring-fenced investment which would realise income for the club of at least R6m a year.”