In what appears a curious case of mismanagement, the Shortland Waters Golf Club in Newcastle has entered into administration, despite a developer currently funding major upgrade works to their golf course. The club says that disruption from two years of course and building works has led to falling memberships and drained its cash reserves.
Retirement village developer Aveo has spent around $8.5 million at Shortland Waters over the past couple of years, providing members with an improved clubhouse and building six new holes as part of a reconfiguration of their golf course. Completed by the Programmed Turnpoint company, the redevelopment work is expected to be finished within the next month, and the full redesigned golf course to be open toward the end of the year.
Despite the impending completion of the golf course development, the members are no longer able to operate the golf club profitably and have engaged the services of a professional administrator to seek an amalgamation partner or, potentially, a purchaser. It is understood that neighbouring golf clubs are unlikely to merge with the struggling club.
The sad demise of Shortland Waters follows similar financial difficulties in recent years at nearby courses Cessnock and Merewether, which both also entered into partnerships or partial land sales with property developers.
From the Newcastle Herald
Retirement living company Aveo says it won’t bail out Shortland Waters Golf Club after the club entered voluntary administration.
Treasurer Kerry Duggan this week raised the prospect of the club, which has 534 members, being sold off to developers if it was not financially viable.
Aveo, which is building a 300-lot, $220 million retirement village in the middle of the course, said on Friday that it would “not be a candidate to take over the management of the Shortland Waters golf course”.
The company is also building new holes and a new clubhouse at the course in a deal which rescued the club from financial difficulty two years ago.
“Aveo has previously provided $8.5 million in financial support to complete the Shortland Waters golf clubhouse and new course holes,” a spokesperson said.
“Aveo recognises that the decision by Shortland Waters golf course to enter voluntary administration reflects a wider decline of the golf course industry,” the Aveo spokesperson said.
“Aveo also recognises that decisions about the future of the Shortland Waters golf course are now decisions for the appointed administrator.”
by Darius OliverBack to News
Lack of golfers blamed for the impending closure of Brisbane’s first ‘signature course’