Peter Alliss golf course sold for just £58k

A Peter Alliss-designed golf club has been sold for just £58,000 to its landlord due to extreme market conditions and a clause in its lease. The club was turning over more than £1.75 million per annum just three years ago and was bought for £650,000 in 2000.

Aston Wood Golf Club in Sutton Coldfield, one of the most prestigious golf clubs in the Midlands, features an 18-hole course, a driving range, a 10,000 square foot clubhouse, practice facilities and a greenkeeping complex, and employs 52 people. It was placed in administration in August after it failed to pay staff salaries and rent to its landlord.

The club had lost over 150 members since it was first put up for sale in 2008.

The drop in members meant the club became reliant on off-season functions to generate additional income, but the cold weather in late 2010 forced the cancellation of a number of key events, which ultimately led to the problems the club experienced this summer.

The new owner – Aston Wood Golf Club Ltd – is a company connected with the club’s landlord, Struan Investments.

A report written by joint administrator Nigel Price, of Begbies Traynor, stated: “While the club has capacity to accommodate 800 members, tough market conditions and competition from other clubs in the local area led to a fall in numbers. Membership for the current year had fallen to 648.

“Due to a not-for-profit clause contained within the lease, the club had a nil value. This reduced the balance sheet value of the company’s leasehold interest to nil, rendering the company insolvent on a balance sheet basis.

“Given the urgency involved, the sale was the best outcome which could have been achieved. Jobs were preserved, members are still able to play and two wedding receptions, which otherwise could not have gone ahead, were saved.”

The championship course was designed by BBC television presenter and commentator Peter Alliss and former golf professional Clive Clark, and opened in 1994.

It was first put up for sale in 2008 when it had a membership in excess of 800 and a successful function trade, and was turning over in excess of £1.75 million per annum. At the time its rent was £183,000 per year, but Struan Investments had reduced that this year due to the difficulties the club was experiencing.