by Cheryl Tay
Sovereign wealth fund Government of Singapore Investment Corp (GIC) has bought PGA West and La Quinta Resort & Club (pictured), along with several other high-end golf courses, for US$1.5 billion (S$1.84 billion) from a group led by US-based hedge fund Paulson & Co.
Under the purchase agreement, PGA West’s six courses, comprising 109 holes, will remain PGA-branded until 2061. Paulson & Co will also transfer the licensing agreement to GIC’s property investment division, according to Gary Sims, Managing Director of La Quinta Resort & Club and PGA West, a top-calibre golf destination known for its colourful Hollywood history.
“We had an existing license agreement with PGA of America that dates back to the early 80s and the original development here. But that licensing agreement (for PGA West’s six courses) was reaching its expiration about the time this ownership change took place. We renegotiated that agreement and extended it another 50 years.”
The licensing agreement, which only includes the clubhouses and golf courses, grants the resorts the exclusive right to utilise the PGA name within a 250 mile radius, in return for a yearly royalty payment.
Furthermore, GIC is also buying the Claremont Hotel Club & Spa in Berkeley, the Arizona Biltmore in Phoenix and the Grand Wailea Resort Hotel & Spa at Hawaii.
Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email email@example.com