Acquisition of Newark Golf Club opens up untapped growth potential in this historic Nottinghamshire gem

In July, we acquired Newark Golf Club, adding to a portfolio of courses that includes Murrayshall in Perthshire and the Bramshaw Golf Club and Paultons Golf Centre in the New Forest.

Stretching across picturesque rural heathland, the 125-year-old, 18-hole Newark Golf Club is an exciting investment prospect. Working in close partnership with the club committee and members, we plan to upgrade the course, refurbish the hospitality facilities and make more of the club’s commercial potential.

So what are the opportunities to increase revenues and deliver a favourable return for our investors?

Newark Golf Club has operated as a Private Members club since 1901, the business’ core revenue stream has been its membership fees. We are very pleased to inherit a committed membership base and look forward to working in conjunction with members to drive improvement at the club. There are also commercial opportunities that have not been a focus historically, such as attracting visitor green fees and enhancing food and beverage and retail revenue, both of which were previously operated by franchisees. Managing these services in-house will give us greater control over how they are developed as we look to broaden the club’s appeal and open up new revenue streams.

Saved from closure

The acquisition has been welcomed by members and staff. Prior to acquisition, the club faced the prospect of insolvency and closure. Recognising its potential, we stepped in to buy the club from the members just as it was going into administration, saving both the club and the jobs of its workforce.

Growth potential

So why are golf courses such an important investment target for Stellar Asset Management? This is an area of the leisure sector that has rarely benefitted from the investment it both merits and needs. This makes it a perfect fit, allowing us to invest, uplift and deliver a favourable return for our investors from assets with strong but still largely untapped potential.

In 2021, for example, we acquired the Bramshaw Golf Club and the adjacent Bell Inn Hotel to create a ‘play with us, stay with us’ experience. As part of a New Forest Golf Group that also includes Paultons Golf Centre, Bramshaw offers a quality destination for golf trips for people coming from London and the South-East, as well as visitors from abroad via Heathrow and Southampton Airports.

Our partner in the selection and management of golf clubs like Bramshaw and now Newark is Ben Blackburn. Ben is a former professional golfer and leading coach, who has built up a strong record of golf club management and development. Ben’s inside knowledge helps us to identify and nurture high potential assets like Newark and Bramshaw, which other investment managers might miss.

As an asset-backed investment, security is provided by ownership of the freehold land that underpins the asset.

Exciting opportunity

David Stein, Investment Manager at Stellar Asset Management, oversees the strategy, operations and performance of our golf portfolio and has been closely involved in the acquisition of Newark Golf Club. Commenting on the investment strategy and plans for improvement, he said: “A golf club of this size, history and potential does not often become available and we look forward to delivering a positive return for investors from this exciting opportunity. As a private sale, we were able to secure the asset at a favourable price, while safeguarding the future of the club, the jobs of its staff and the financial interests of its members. We are indebted to the support we have received from the staff, committee and members. As we embark on improvements to both the golf and hospitality facilities, we look forward to being stewards in this next chapter in the club’s rich history.”