Golf course for sale at one-tenth of development cost

Commercial Property, The Scotsman, 8 December 1998

A par-72 course on Scotland’s golfing “gold coast”, which was developed with foreign money at a cost of between £3m and £4m seven years ago, has gone on the market for around one tenth of that figure - after going into receivership for the second time, writes Ken Houston.

Brunston Castle Golf Course, at Daily, by Girvan, which is situated only a short distance from the the world-famous Turnberry course, has twice had the receivers called in and is now on sale for the second time within the decade.

The course, was developed by an overseas company. When it went into receivership, another company was set up to buy the course but it too went into receivership last month. It is believed the person behind both’ companies was Bob Low, a diamond dealer based in Antwerp, and a golf fanatic who is a frequent player on the Ayrshire courses.

Alan Creevy, leisure director in Scotland with the selling agent, Chesterton, said: “The business was developed in the early 1990s but unfortunately has failed to achieve the returns required for the very significant investment, and the business was placed in receivership in November.

“Quite simply, the capital in-vestment was never going to be recouped; it was just too high for a club with 350 members on a pay-as-you-play basis.

“There are two ways to build a golf course. One is to start shifting soil around, the other is to work around what is there, which is less expensive. Unfortunately in this case the first option was taken.”

The course was designed by architect Donald Steel in 1992. The site extends to 221 acres and as well as the 6,730 yard, par-72 golf course, also includes a purpose- built clubhouse with professional’s shop, bar, restaurant and conference room.

Part of the course is freehold and part is held on a long ground lease, which expires in 2110.

Said Mr Creevy: “We have no doubt that the sale will generate substantial interest, not only from local businessmen, but also from overseas golf operators. A number of serious inquiries have already been received and we expect to set a closing date very soon.”

Mr Creevy insisted that the course, now freed of its debt, was trading profitably. “The price reflects ‘current trading conditions, rather than capital investment,” he added.

The receiver, in this case, is BDO Stoy Hayward. Said Bob Hill of the company’s Glasgow office: “Golf courses do go into receivership from time to time but it is not terribly common.”