Drive Shack Inc. Closes Sale on 11 of Its American Golf Properties
NEW YORK--(BUSINESS WIRE)--Dec 27, 2018--Drive Shack Inc. (“Drive Shack” or the “Company”) announced today the completion of the sales of 11 golf properties owned and operated by its American Golf subsidiaries. Generating proceeds of approximately $82.5 million, the courses sold include Canyon Oaks Country Club in Chico, CA; El Camino Country Club in Oceanside, CA; Monterey Country Club in Palm Desert, CA; Oakhurst Country Club in Clayton, CA; Oregon Golf Club in West Linn, OR; Palm Valley Country Club in Palm Desert, CA; Plantation Country Club in Garden City, ID; Seascape Golf Club in Aptos, CA; Sunset Hills Country Club in Thousand Oaks, CA; The Trophy Club of Apalachee in Dacula, GA; and Wood Ranch Golf Club in Simi Valley, CA. The net proceeds from the sales were used, together with cash on hand, to prepay $102 million in outstanding debt.
American Golf will remain the management company for each of the golf properties that were sold, except for Apalachee, Oakhurst and Seascape courses.
“This is a massive step forward in our strategy to monetize the portfolio of owned courses” said Ken May, Drive Shack Inc. CEO. “We continue to move in the right direction with American Golf, focusing on optimizing and growing our leased and managed courses.”
The company announced its decision to sell all 26 of its American Golf owned properties earlier this year and expects to generate nearly $175 million in capital from the sales. To date, 12 courses have been sold. American Golf will continue to operate its leased and managed properties and grow the portfolio through the addition of new management agreements.
ABOUT DRIVE SHACK INC.
Drive Shack Inc. (NYSE:DS) is a publicly traded owner and operator of golf-related leisure and entertainment businesses. The company’s subsidiaries include American Golf, its traditional golf enterprise that operates private, resort and public golf courses nationwide, and Drive Shack, a golf and entertainment company that features the latest in golf and gaming technology with venues offering signature interactive range games, virtual course play, restaurant and bar, and classic arcade game center. Drive Shack opened its first venue in Orlando, April 2018 and has several locations opening in 2019 including Raleigh, NC; Richmond, VA and West Palm Beach, FL. For more information visit driveshack.com.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s ability to consummate the sales of its owned golf courses, the Company’s ability to achieve the stated gross proceeds from the sales of its owned golf courses and the Company’s ability to add new management agreements and expand its national footprint. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond Drive Shack’s control. The Company can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
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KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: GOLF PROFESSIONAL SERVICES FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE SPORTS
SOURCE: Drive Shack Inc.
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PUB: 12/27/2018 08:00 AM/DISC: 12/27/2018 08:01 AM