Crown Resorts considers sale of Capital Golf Club
Crown Resorts is contemplating the sale of the prestigious Capital Golf Club as part of efforts to stabilize its finances, which have been impacted by a decline in high-roller attendance at Australian casinos.
According to the Australian Financial Review, the golf course, designed by champion golfer Peter Thomson and opened in 1997, was previously reserved for elite patrons, including celebrities like Tiger Woods and Celine Dion. However, it has seen dwindling use since the COVID-19 pandemic and increased scrutiny on junkets from China.
Crown acquired the 18-hole course in Heatherton for AU$67.6 million ($45.9 million) in 2013 during James Packer’s leadership. Now under private equity firm Blackstone, which purchased Crown for AU$8.9 billion ($6 billion) in 2022, the golf course is deemed non-essential to the company’s core operations.
Discussions regarding a potential sale have taken place with several interested parties, including the billionaire Fox family and Melbourne Storm chairman Matthew Tripp, although no formal auction has been initiated. The sale could lead to the development of a luxury golf resort akin to Augusta National Golf Club in the U.S.
Crown Resorts is also exploring other asset sales, including its 20 percent stake in the renowned Nobu restaurant and hotel chain, and has received interest for its upscale London private members casino, Aspinall’s Club.
The company’s financial woes stem from the pandemic and findings from two royal commissions in 2021, which revealed serious regulatory breaches.
While Crown has been found suitable in both Sydney and Melbourne, it’s still awaiting the outcome of the investigation in Perth.
