Babcock and Brown’s Queensland golf course investment caught in the rough

Receivers have been appointed to sell two Queensland golf courses bought in 2002 by a Babcock & Brown investment syndicate.

 The Robina Woods golf course, considered by many to be the most picturesque on the Gold Coast, has been listed for receivership sale through CB Richard Ellis and McVay Real Estate, along with the nearby The Colonial course.

 The courses have been listed for sale under instructions from Joseph Hayes and Jamie Harris from McGrathNicol as receivers and managers of Playmore Golf Pty Ltd.

 Former Babcock & Brown chief executive Phil Green has been one of the three directors of Playmore since 2002, along with Sydney entrepreneur Danny Goldberg, and Malta-based Eric Lucas.

 The property was bought in 2002 for $7.28 million from the American Golf Corporation.

A recent meeting of creditors was attended by 16 creditors with claims totalling $3.86 million.

Reporting on its purchase, the Australian Financial Review noted the investment syndicate was managed by Babcock & Brown.

Noting Babcock & Brown was one of Australia’s savviest property investors, the newspaper quoted Babcock director Michael Maxwell as saying golf was a sector with growth potential as a wave of people retired from the main cities.

Maxwell said Robina Woods and The Colonial were examples of golf courses where there was a mature environment that could generate acceptable investment returns.

“It’s not a sector you can just waltz into,” Mr Maxwell told the AFR.

The highly rated championship golf courses are within a few kilometres of each other in the master-planned residential community of Robina.

 Offers are due by August 18, with agents Mark Witheriff and Paul Nyholt of CBRE, with McVay Real Estate’s Will and Sam McVay, expecting international interest.

“Courses of this standard are rarely offered to the market, with Royal Pines being the last Gold Coast course to change hands in 2009,” Mr Witheriff said.

 Prospective purchasers could include time-share and hotel operators.

 Robina Woods is an 18-hole, par 71 course on 61 hectares.

 The Marsh Waston-designed course opened in 1990 and incorporates a landmark clubhouse with food and beverage facilities and banquet rooms. There are tennis courts and access to a wedding chapel.

 The Colonial is an 18-hole, par 72 course on 75 hectares designed by Mitsuaki Kobayashi, which opened in 1992. Built by Nara Australia Pty Ltd, the course opened as Paradise Springs Golf Course. Its facilities include a Queenslander-style clubhouse, pool and spa.