23 September 2002
Goldman Sachs’ GS Capital Partners 2000 LP and Whitehall Street Real Estate Fund, and hotel & resort owner Starwood Capital Group’s SOF VI US Holdings LLC will pay nearly $US1.1 billion for the troubled National Golf Properties real estate investment trust and the outstanding equity of American Golf Corp, a privately held company which leases & operates nearly all National Golf’s properties. National Golf and American Golf own/lease/manage more than 250 municipal, daily fee, resort & private golfcourses & clubs with more than 50,000 members, mostly in the US but also in Britain, Australia & Japan.
Stadium Australia, owner of Telstra Stadium in Sydney, the main venue for next year’s rugby world cup (7 games next October), is technically insolvent after making an $A80 million loss in the June 2002 year. Liabilities exceed assets by $A82.6 million after $A66 million was lopped off the stadium’s value. The listed stadium owner remains alive only because the ANZ Bank has extended waivers on its $A131 million long-term debt. Telstra has a new 7-year naming rights contract. The stadium cost $A650 million to build for the 2000 Olympics but is valued now at only $A120 million.