Deals

LGV recaps UK golf courses for £60m

The London-based UK mid-market firm has secured debt facilities from Anglo Irish Bank to recapitalise its investment in The Club Company.

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Legal and General Ventures has completed a refinancing of The Club Company, a UK operator of golf and country clubs, with debt facilities of £60 million (€89 million; $110 million) from Anglo Irish Bank.

The upshot of the refinancing is that we’re able to take a significant stake off the table.

Bill Priestley, managing director, Legal & General Ventures

The Club Company maintains 11 golf and country clubs, the best known of which are The Warwickshire, Castle Royle near Maidenhead in Kent and Nizels, near Sevenoaks. Alongside golf facilities, the country club offerings include gyms, swimming pools, spas, saunas, crèches and function rooms.

LGV took The Club Company, at the time known as Clubhaus, private in May 2004, when it bought a majority stake for £57 million.

Bill Priestley, managing director of LGV, told PEO: “We bought the business about 15 months ago for £57 million, with the balance sheet showing around £40 million in debt, and £20 million or so in equity from us. Since then, we’ve invested in the business to assist in the development of the Chartham Park and Warwickshire sites through a combination of cash from the business, new debt and new equity. The upshot of the refinancing is that we’re able to take a significant stake off the table.”

Bill Priestley, managing director, Legal & General Ventures

As the clubs are predominantly freehold or long leasehold, Priestley said that a refinancing was the best option currently. “We’ve secured property finance for the business, which benefits from a strong freehold asset backing, and it made sense to optimise the cost of capital to get as much debt in to recognise that fact.”

In addition to The Club Company, LGV’s UK leisure portfolio now comprises: Vue Cinemas, which it acquired in 2003; Tragus, owner of the Café Rouge and Bella Italia Restaurant chains, bought for £170 million in January 2005; North West England-based health and fitness operator Total Fitness.

In 2004, LGV exited its investments in caravan parks operator Bourne Leisure and the Unique Pub Company.