Yering Meadows supposedly acquired for $7.5 million

Yering Meadows Golf Club in Melbourne’s outer east has reportedly sold for $7.5 million to a Chinese investor to combat the club’s staggering debt and plummeting memberships.

Portrayed as the latest victim of Melbourne golf’s continuing downturn, where private courses have been sold, merged or relocated, the Yarra Valley club was reported to sell off its assets in April last year to tackle an approximate $3.5 million debt to the National Australia Bank.

In a membership letter from the board and seen by the Leader, club memberships had dropped from 1150 to 615 since the Croydon Golf Club relocated from its former Dorset Road site to the Victoria Rd in June 2008, and another 134 members were lost over the 2015-renewal period.

“We will survive,” vowed the club president John Surridge to The Sydney Morning Herald.

According to the notice to members, the bank had pledged it would support the club until October 2015.

However, in a special general meeting held in April, where the board sought member’s approval to sell equity in the land and leasing the 27-hole golf course back from whomever bought it, the members overwhelmingly voted in agreement to sell the freehold land.

Though, the club would retain all golf operations, the hospitality business and ownership of the 15ha walnut plantation, which was part of an agriculture deal the club struck with the new council during the relocation in 2008.

Last week, rumor had it that an Australian resident of Chinese origin had acquired the distressed club for tourist development purposes in the Yarra Valley region.

According to a leaked Q&A transcript from a member meeting held on April 26 , the club had recently signed a 45-year lease at $350,000 per year with holding company Jiang Group, with subsidiary Yering Properties acquiring the property for $7.5 million.

The document however stated that Yering Meadows will maintain full control of all club operations and that the owner’s primary intent was to access vacant land, which could be developed into on-site accommodation for visitors and members.

According to the board, the $350,000 per annum rent is less than the club’s current interest repayments, and the club is expected, “with the implementation of further measures within the operation”, to be able to meet the hefty rental fee.

The board avowed that the lease agreement was made in club member’s best interest and “would maintain the key objectives of members as given to the Board”, referring back to the vote in 2015.

“It was a matter of good timing, the right price and most importantly an excellent lease agreement…” the transcript concluded.

The club was not able to be reached to give comment.