Acquisition financing secured for 18-hole golf course

Amount: $5,430,000

LTV: 65%+

Amortization: 20 years

Lender: Credit Union 

Location: Kelowna

Goals achieved: Greater flexibility, Additional leverage

Lakepoint was recently engaged to secure acquisition financing for an 18-hole golf course located in Kelowna, BC. As a "special use" asset, while there are several commercial lenders that will consider financing a golf course, the terms offered by many of those lenders are not as competitive, with limited LTV (50-60%) and shorter amortizations (10-15 years) being commonplace. In short, the type of financing that makes sense to have a professional corporate debt advisor assist with!

After receiving the mandate, Lakepoint prepared a robust, well-researched Request for Financing package which was then sent to our collection of commercial lender partners. We receiving multiple competitive offers, with our client ultimately choosing one of them to proceed with. Helping the cause was the fact that our client - a successful entrepreneur with a strong balance sheet - owned a prestigious golf course in the prairies for several years, with that course generating consistent, predictable profits each year despite being subject to a shorter golf season. That existing experience provided comfort to the incoming lender for the Kelowna acquisition.

Thank you to our client for entrusting us with this engagement, and we are looking forward to losing a few Lakepoint-branded golf balls on the course under the guise of 'strategic marketing'!