Surf Coast golf club and hotel up for sale after owners default on loan facility from NSW firm

A popular Surf Coast golf club and hotel is on the market after receivers were appointed because of the owners defaulting on a loan to a NSW-based “boutique private lending business”.

The Sands golf club and hotel in Torquay is again up for sale. Picture: CBRE.

A popular Surf Coast golf club and hotel is on the market after receivers were appointed because of the owners defaulting on a loan.

CBRE is handling the freehold sale of The Sands via an expressions-of-interest process that will end in late May.

The sale comes little more than three years since the site last changed hands.

Sydney-based firm Mackay Goodwin was appointed as receiver on December 15, according to Australian Securities and Investments Commission documents.

A secured creditor to the existing ownership group, Destination Leisure Holdings (DLH), appointed the firm in an effort to recoup money owed.

Mackay Goodwin director ​Edwin Narayan confirmed DLH was in default of a loan facility to Central Real Capital – a self-described “boutique private lending business”.

“I cannot disclose the figures due to commercial sensitivity,” Mr Narayan said.

“The results of the sale will influence the effect on stakeholders, but it is too early to comment.”

Cats forward Tom Hawkins competing in a charity event at The Sands in January. Picture: Alison Wynd.

DLH purchased the 76.5ha property out of administration in February 2021 for $12.8m, well below the $23m it sold for in 2017.

Scott Callow is managing the sale on behalf of CBRE.

He would not provide a price guide because of the receivership, but said there was already strong interest, including from potential international investors.

Paul Fielding, who has regularly represented DLH, could not be contacted.

Mackay Goodwin issued a statement on Tuesday to confirm the sale.

“We present an exclusive opportunity to purchase or invest in one of Victoria’s most recognisable and well-regarded links golf courses,” it said.

“The Sands Resort combines with a 112-room hotel and associated food, beverage and conference facilities.”

A gym, 25m indoor pool, tennis courts, and 280-bay carpark also form part of the sale, as well as the potential for further residential development at various locations around the golf course, subject to council approval.

This could include building a basement carpark that would allow for the development of the current carpark.

The CBRE listing highlights the strong membership base of the golf club.

The cost of golf memberships increased by more than 10 per cent last year as management highlighted ongoing costs “associated with maintaining the very high standard of the course and surrounding facilities”.

“The owners have made significant investments in golf and to date have absorbed the increased costs associated with delivering a golf course that I believe stands out on the Surf Coast,” golf director Tom Jefferies told members.

“The owners have committed to continuing to invest in the golf course and the new membership fee structures are necessary to support that commitment.”

The Sands offers a range of golf and hospitality facilities. Picture: CBRE.

Investment and financial services company Novus Capital valued The Sands at $35m in 2021, subject to the completion of a $4.8m refurbishment by DLH.

The same Novus note forecast total revenue of $15.4m this financial year and net profit before management fees and interest of $5.1m.

Originally published as Surf Coast golf club and hotel up for sale after owners default on loan facility from NSW firm