Professional Property Advice
For Golf Course Owners

Through exposure of major golf tournaments particularly the Ryder Cup, golf is becoming one of the fastest growing leisure activities in the UK. To ensure that your business is getting the most from this thriving market, Michael Hodges, Chartered Surveyor and specialist leisure property business transfer agent at DTZ Debenham Tie Leung, provides an insight into his work within the golf course sector and notes his “advice guide” in appraising golf courses.

Michael says: “Frequently my colleagues and I are asked to provide golf course owners and operators with valuations and marketing appraisals of their golf course businesses. But how do we go about it and seek to add value?”

The below gives a brief summary of the different stages:

Stage 1 – Establish contact with your clients and ascertain their requirements

• Understand your clients’ needs and requirements
• Agree terms of reference and objectives
• If the business is still trading, be discreet and respect confidentiality
• Ensure minimal disruption to the existing business operation

Stage 2 – Undertaking a thorough inspection of the property

• Undertake a detailed examination of the clubhouse facilities (including restaurants, locker rooms, pro-shop etc)
• What ancillary facilities like car parking is there?
• Walk or take a buggy around the golf course noting its playing characteristics (eg number of holes, par, bunkers and interesting features) – sadly no rounds played
• Inspect the quality of the tee’s greens and fairways, are they well drained or is there adequate automated irrigation?

Whilst the value of a golf course is derived to a large extent by its profitability, it is equally important to have a full appreciation of the physical facilities because these will have a significant affect on trading potential.

Stage 3 – Understanding the business

• Talk to the owner and “understand the business”
• Ascertain how the club makes money and the nature, extent and type of customer base
• Understand the accounts, breakdown the income stream and profit centres to establish the tradition potential
• Report back to the client and appropriate findings and recommendations