First Ever ‘Crowdfunding’ of a Golf Course
Story published at 14:47, Friday, July 17th, 2015
The GolfCity concept is currently considered the most innovative model for the future of the golf industry. The European Golf Course Owners Association (EGCOA) recognized GolfCity as the best concept for the future in Europe with the “Grow the Game” award. To finance part of GolfCity München Puchheim – the second GolfCity course in Germany after Cologne Pulheim – the company is trying something new, offering investment in the form of crowdfunding for the first time ever in Germany.
The goal of the campaign is to collect a total of 750,000 Euro within 90 days to build more holes, practice facilities and infrastructure at the new course on Puchheim. The response has been resoundingly positive. After five days, investors had already contributed 150,000 Euro and after 14 days the amount had risen to 500,000 Euro. The current level of investments is at 680,000 Euro.
“We are overwhelmed by how readily customers have embraced this new, innovative idea. In addition to the fact that, after 14 days we had already exceeded the 500,000 Euro threshold, the feedback has been consistently positive,” says Marcus März, project manager at Clubhaus AG. The German golf market and particularly the GolfCity concept offer “considerable potential compared to other international markets.”
GolfCity Puchheim Gutshof Harbeck GmbH, a 100% subsidiary of Clubhaus AG, one of the most renowned German golf course developers and operators, is directing this investment via the internet primarily towards its own satisfied customers – more than 20,000 golfers all over Germany. The goal of the campaign is to apply the 750,000 Euro in the form of profit-participating subordinated loans from investors towards the second and third stages of construction of GolfCity München Puchheim. In addition to confidence in the company and an interest in an excellent golf product, investors are being enticed by 4% dividends paid biannually, a performance bonus of up to two more percent, collateralization of the investors’ money through the leasehold and many attractive perks for active golfers.
For many years now, the golf market in Germany has been developed below its potential.
Ulrich Kastner, board member of the parent company Clubhaus AG, is convinced that established suppliers have long applied a faulty golf course concept “aimed at only premium customers” – a circumstance that makes classic financing by banks much more difficult for course developers. The German golf market and particularly the GolfCity concept offer considerable “potential to catch up when compared to other international markets.”
GolfCity is so much more than the common cliché of the elite, complicated sport of golfing. The sport provides not only healthy relaxation in nature away from every-day stress, it can be a way of life that is quickly and openly integrated into the urban routine. GolfCity offers precisely this. As with other GolfCity courses, Puchheim is located at the heart of the city, quickly and easily accessible, including by public transportation.
GolfCity Puchheim Gutshof Harbeck GmbH www.golfcity-crowdinvesting.de