The Shortland Waters Golf Club is now likely to be taken over by another club after falling membership and disruption from building work drained its cash reserves.
Aveo is currently building a 300-unit retirement village at the course and contributing six new holes and a clubhouse. As we covered here, the village operator had fast-tracked the $23 million second stage of the village after the first stage of 50 homes sold out but is not interested in taking over the Club according to the Newcastle Herald.
Treasurer Kerry Duggan told the paper that he was confident the club would thrive when its new holes opened next year, but it would not survive until then without help.
“Administration was protection for the directors … We saw that as a way of keeping the club going.”
Club members originally bought the former Steelworks course off BHP in 2000 and renamed it Shortland Waters.
Mr Duggan added that the Aveo deal had saved the Club from going under two years ago and he had no regrets about the deal.
“The only problem with that is the length of time the development has impacted on the course. The club itself, prior to the development, was basically heading out of business,” he said.
Golf clubs are struggling to attract new members and redevelopment opportunities are not always saving them from closure.
The nearby Cessnock Golf Club went into voluntary administration in May with debts of more than $11 million, 13 years after entering into a joint venture with Daracon Group for a $30 million redevelopment.