10 Seattle golf courses sold for $137M to Chinese conglomerate

[Howard Riefs]

Oki Golf sold its 10 Seattle area golf courses at eight locations for $137.5 million to a Chinese conglomerate, HNA Holdings. They are:
-two high-end courses at The Golf Club at Newcastle;
-Washington National Golf Club in Auburn (home to the University of Washington golf teams);
-The Golf Club at Redmond Ridge;
-Trophy Lake Golf & Casting in Port Orchard;
-Harbour Pointe Golf Club in Mukilteo;
-two courses at the Golf Club at Hawks Prairie in Lacey;
-The Plateau Club in Sammamish; and
-Indian Summer Golf & Country Club in Olympia.


http://www.seattletimes.com/business/real-estate/oki-sells-10-local-golf-courses-for-137m-to-chinese-conglomerate/


Is this transaction the start of a trend or an aberration?

[Mike Hendren]

Is this transaction the start of a trend or an aberration?

More likely one of several scenarios:  1) an ill-advised stretch for yield where alternative investments offer little; 2) parking liquidity in tangible assets to mitigate sovereign risk; 3) a rare combination of liquidity and memory lapse; or 4) a long-term land bank.

[David_Tepper]

We have seen this movie before, back in the late 1980's-early 1990's. Back then Japanese interests were buying golf courses in the U.S., including Pebble Beach. We know how that worked out for them. 

[Wayne_Kozun]

Or far more recently. http://raycomgroup.worldnow.com/story/28882076/chinese-investment-group-now-owns-22-myrtle-beach-golf-courses


This doesn't appear to be working so well as the Chinese owner has some troubles back home.

[Tom_Doak]

The interesting part of the story to me is that the Chinese conglomerate is Hainan Airlines, which operates direct flights from China to Seattle.


Hainan Airlines grew in stature when Hainan Island, its base, started becoming a golf destination in addition to a beach getaway for Chinese [and Korean] tourists.  And they understand as well as anyone that golf tourism has hit a road block in China because of the national government's opposition to golf development.  Seattle, along with Hawaii, seem like reasonable places for them to expand.  But I wouldn't see this as a trend.


Myrtle Beach, that one I didn't understand.  Except, as I've reported before, these multi-million-dollar investments in U.S. businesses come with access to multiple green cards, and there are lots of Chinese businessmen who'd like to have a few of those for their extended families.