Shining light on troubled golf club

SALE negotiations are underway for the besieged Arundel Hills Golf Course, as land title records reveal the owners recently mortgaged the property with an unconventional lender.

Two Victorian businessmen have agreed to purchase the 67ha property, which has previously had plans for up to 78 new homes plus a hotel or aged care facility with 100 rooms.

Title documents reveal Melbourne barrister Andrew Barbayannis and property broker Dale Carroll lodged a caveat for the property on April 4.

Mr Carroll told the Bulletin the matter was “sensitive”, but that golfers would ultimately be happy with their plans. He could not provide further comment.

The company behind Arundel Hills Country Club, Zhongsheng Management, was placed in external administration on Tuesday morning. Graham Killer, of Grant Thornton, appointed administrator.

The course was closed and staff told not to return to work.

Administrators said it was too early to reveal the cause of the company’s financial trouble. However, title documents may provide some insight.

The club is owned by Zhongsheng Group, which paid $13.5m for the course, including its clubhouse and development land, in 2015.

Title records show Zhongsheng took out a mortgage for an undisclosed sum in December 2021, in favour of Sydneybased lender OUF Commercial.

The website for OUF says it provided commercial and bridging financing “in a hurry”.

The property had been advertised for sale by an “overseas investor looking for offers” as a potential residential development, “hotel or aged care development with free golf course”.

The advertisement said the club had plans for up to 78 homes plus a hotel or aged care facility with 100 rooms.

Listing agent Joseph Codianni, of Real Commercial Qld, declined to comment on the property’s sale.

A creditors meeting is set to be held via webinar at 2pm on June 2.