Drive Shack Inc. Closes Sale on 11 of Its American Golf Properties
December 27 2018 - 8:00AM
Business Wire
National Golf Company Locks in Capital to
Further Growth & Expansion Plans
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.
FORWARD-LOOKING STATEMENTS
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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version on businesswire.com: https://www.businesswire.com/news/home/20181227005065/en/
Media:Jeanette Chin516.206.8165jchin@driveshack.com
Investor Relations:Austin
Pruitt516.268.7460ir@driveshack.com
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