Golf resort sale tees off
Torquay complex back on market as receivers appointed
A Surf Coast golf club and hotel is on the market again after receivers were appointed little more than three years since the site last changed hands.
CBRE is handling the freehold sale of The Sands via an expressions-of-interest process that will end in late May.
Sydney-based firm Mackay Goodwin was appointed as receiver on December 15, according to Australian Securities and Investments Commission documents.
A secured creditor to the existing ownership group, Destination Leisure Holdings (DLH), appointed the firm in an effort to recoup money owed. It is unclear who that lender is.
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 appointed Belgravia Leisure to oversee the operations for a 10-year period.
Scott Callow, who is managing the sale on behalf of CBRE, would not provide a price guide because of the receivership, but said there was already strong interest, including from potential international investors.
Paul Fielding, who has regularly represented DLH, could not be contacted.
Mackay Goodwin confirmed the sale on Tuesday.
“We present an exclusive opportunity to purchase or invest in one of Victoria’s most recognisable and well-regarded links golf courses,” it said.
“The Sands Resort combines with a 112-room hotel and associated food, beverage and conference facilities.”
A gym, 25m indoor pool, tennis courts, and 280-bay carpark form part of the sale, as well as potential for further residential development at various locations around the golf course, subject to council approval. That could include building a basement carpark that would allow for development of the current carpark.
The CBRE listing highlights the golf club’s strong membership base.
The cost of golf memberships increased more than 10 per cent last year as management highlighted ongoing costs “associated with maintaining the very high standard of the course and surrounding facilities”.
“The owners have made significant investments in golf and to date have absorbed the increased costs associated with delivering a golf course that I believe stands out on the Surf Coast,” golf director Tom Jefferies told members.
“The owners have committed to continuing to invest in the golf course and the new membership fee structures are necessary to support that commitment.”
Investment and financial services company Novus Capital valued The Sands at $35m in 2021, subject to completion of a $4.8m refurbishment by DLH. The same Novus note forecast total revenue of $15.4m this financial year and net profit before management fees and interest of $5.1m.