Packer’s Crown Resorts to sell off flagship courses during cost cuts
James Packer’s Crown Resorts is reportedly about to make dramatic cost cuts across the casino group, which will include selling off its flagship golf courses and its half-share of flagship rural property Ellerston in the NSW Hunter Valley back to the Packer family.
According to The Australian, Crown, still reeling from last year’s debacle where several of its staff in China was arrested for alleged gambling crimes, is laying off up to 200 of the company’s staff at its Perth operation.
Also on the company’s chopping block is the prestigious Capital Golf Club in Melbourne, bought from Lloyd Williams in 2014 for $67.6m.
Supposedly, Crown is seeking an independent valuation for the 30,000ha Ellerston site before it is sold back to Mr Packer and his sister.
Crown acquired a half-share in Ellerston in August 2015 from James Packer’s private company Consolidated Press Holdings for $60m, featuring luxury accommodation and one of Australia’s best golf courses designed by Greg Norman.
The price tag on the latest deal is not expected to be less than $60m. The operating costs for Ellerston are said to be about $6m a year.
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