Golf club equity format

Posted On Wednesday, 06 February 2002 02:00 Published by
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DEVELOPERS of Pezula Private Estate, a multimillion-rand development linked to Sparrebosch Golf Estate in Knysna, are introducing a golf club structure that makes membership a tradable equity.
DEVELOPERS of Pezula Private Estate, a multimillion-rand development linked to Sparrebosch Golf Estate in Knysna, are introducing a golf club structure that makes membership a tradable equity.

Popular in Europe and the US, this format gives the golf club some characteristics of an investment asset. As a tradable entity, membership is rentable and can appreciate in value. 'This makes the concept very different from that of conventional club membership, where you never again see the money you paid to join the club,' say developers Keith Stewart and Clive Venning.

Having bought 600ha on the eastern side of Sparrebosch Golf Estate, Venning and Stewart also bought Sparrebosch Golf Club and an 18ha beachfront site known as The Cove with an eye to linking the three developments. Together, the three properties form a 1000ha development mixing nature conservation, residential development and a golf course.

Launched two years ago, Sparrebosch offered 420 residential stands on a 270ha piece of land. Pezula presents a further 250 stands from 4000m² to 30000m². Prices range from R700000 to R7m. About 200ha of indigenous forest has been declared a conservation area.

Pezula residents will have access to the Sparrebosch golf course if they sign as members. Venning says the project has the backing of 99% of Sparrebosch home owners, who have been relieved of responsibility for maintaining the course and clubhouse. This will be assumed by Stuart and Venning's new company.

By increasing the number of members to1500 from fewer than 500, including corporate memberships, considerable revenue could be raised to extend and enhance the facilities, says Venning.

He and his partner plan to add bowling greens, a swimming pool, tennis courts, an equestrian centre, restaurant and conference facility to the club.

The developers hope their membership share programme will raise R60m.

Publisher: Business Day
Source: Business Day

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