Property developer Port Bouvard Limited has signed an agreement for the sale of the international standard 18-hole golf course ‘The Cut’ plus some related major property assets at its residential resort estate near Mandurah, south of Perth, for $20 million.
Mr John Kelly, The Director of ‘The Cut’, and his investment entity Vive Holdings, are purchasing the golf course, the newly-opened Club House and the adjoining Resort Hotel and Villa development sites in the estate’s beachside Southport precinct from Port Bouvard. The agreement was announced after expressions of interest for the sale of the Marina at Port Bouvard had closed after being extended for a week following strong market interest. Assessment of the bids for the Marina, situated in the estate’s Eastport precinct on the Peel estuary, is expected to be completed this month.
“The sale is a very good deal for the company and its shareholders. The company’s Board has previously foreshadowed its intention to dispose of these assets and to continue to return profits achieved to shareholders in the most tax effective way, whether by dividends or the return of capital,” Mr Ross Neumann, Managing Director of Port Bouvard, said.
Mr Neumann said the agreement, plus the sale of the Marina, would leave only approximately 380 residential lots left on the market as the remaining assets at Port Bouvard - less than 20% of the estate. About 120 of the 600 residential lots at the company’s successful Princeton Private Estate at Stirling are still to be sold. The selldown of the remaining lots at both estates and the final payouts for shareholders are now forecast to be completed by the end of the 2007 calendar year.
“We are having a good year with our land sales programs and are on-budget at both the Port Bouvard and Princeton estates. Since the opening of ‘The Cut’ golf course in January we have received a boost to our land sales at Port Bouvard,” Mr Neumann said.
“The Cut is getting rave reviews and is fast fulfilling our plan of making it one of the most acclaimed courses in Australia.”
Announcing the terms of the sale, Mr Neumann said the company had received a non-refundable deposit of $1 million from Mr Kelly and associated entity Vive Holdings. The first principal payment of $12.8 million is due to be paid by December 1, 2005. Two subsequent payments of $3.1 million each are due to be made by September 1, 2006 and by June 1, 2007. He said the titles for the Golf Course, the Club House and the Villa site will be transferred to the new owners with the payment of the first tranche by December 1, 2005.ÊÊThe Resort Hotel site title will be transferred when the company receives the second tranche by September 1, 2006. Port Bouvard will retain security over all the assets to be transferred until the final payment is received by the company by June 1, 2007.
“The company’s Directors are particularly pleased the sale had been made to John Kelly as he has led the development of the course and Club House during the completion and opening phases into becoming world class facilities,” Mr Neumann said.
“The Golf Course and Club House - including the new five-star Mediterranean Restaurant - have already added to the ambience and attractions of the Mandurah region. That reputation will grow in the future as development of these assets proceeds under the new owners. It is another plus for the local community and property owners at Port Bouvard.”
Mr John Kelly said: “We are over the moon to have acquired such a significant social asset in The Cut - it already has the fastest-growing membership base of any course in Australia. We are looking forward to building on that success and also to facilitating world-class quality developments on the Resort Hotel and Villa sites which will be great assets for the regional community.”