KSL picks up resort portfolio

Former KKR affiliate KSL and the Dedman family of Texas will buy resort, sports club and private club assets from Dallas-based ClubCorp in separate transactions valued at $1.8b.

KSL Capital Partners has acquired Dallas-based ClubCorp and its portfolio of 170 golf courses, private country clubs, sports clubs and resorts significantly expanding its focus into the membership side of the leisure business. However, the crown jewel of the portfolio will pass to ClubCorp’s founders.

ClubCorp announced the sale to KSL in tandem with the separate sale of North Carolina’s historic Pinehurst Resort & Country Club, to the family of founder Robert Dedman Jr. The combined value of the transactions, expected to close by the end of the year, total $1.8 billion (€1.4 billion), according to a statement from ClubCorp.

ClubCorp, which posted revenues of more than $ 1 billion last year, owns and operates about 170 properties across the nation, including The Homestead in Hot Springs Virginia, which was founded in 1766 and is billed as the oldest resort in the US. Other sites include Firestone Country Club in Akron, Ohio; the Vista Vallarta in Puerto Vallarta, Mexico; and Mission Hills Country Club in Rancho Mirage, California. All are home to prominent golf tournaments.
 
KSL and ClubCorp will commit $150 million toward capital improvements over the next two years and will look to expand the platform, according to the statement. ClubCorp’s network currently serves approximately 200,000 households.

“ClubCorp provides a significant entry into the membership side of the leisure business,” KSL managing director Michael Shannon said in the statement. The Denver-based private equity real estate firm already has substantial golf course, ski and resort holdings, including Colorado’s Vail, Beaver Creek, Breckenridge and Keystone Mountain Resorts, the California’s Rancho Las Palmas Resort & Spa and Hawaii’s Grand Wailea Resort Hotel & Spa .

KSL, which spun out of KKR-affiliate KSL Recreation, closed its debut fund on more than $1 billion earlier this year.