bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

China Travel International Investment (Hong Kong) (CTII) is expected to see the investment poured into re-establishing a Shenzhen golf club increase to about $450 million as it upgrades the facilities and adds a country club in the next few years.

 Shenzhen Tycoon Golf Club is intending to hold a soft opening on January 18.

 The club's director and general manager, William Yu Lik-wai, said he expected the investment to have a five-year pay-back period based on an estimate of about 800 members for the golf club and 4,000 members for the country club.

 He said about $190 million would be invested to upgrade the club house, provide night golfing for a nine-hole course, and build a villa hotel and a country club.

 This is on top of the $260 million for which CTII bought the golf club, formerly called Honichi Golf Club, in August last year, after the Shenzhen authorities had seized and auctioned off the Sino-Japanese joint venture for failure to pay taxes.

 A 90 per cent interest in the golf club was divided equally between CTII, Lai Sun Hotels and Hong Kong Parkview, with the balance held by a local partner.

  Lai Sun Hotels and Hong Kong Parkview sold their stakes in August and Mr Yu said CTII had increased its stake to 80 per cent, with the local partner holding the remainder. The prices for the stakes were set in accordance with the auction price.

 When the club was taken over by the authorities last year, hundreds of members were left fuming as their expensive investments in fees were left worthless.

 But Mr Yu said former club members could use the facilities for 18 months by paying an additional $58,000.

 They would have $40,000 if they decided against joining the club at the end of the 18-month period.

 Mr Yu said the offer would not only satisfy former club members but also give a stable income for the club.

 Former club members total about 1,600, with about 600 of them Japanese, 300 Koreans and 500 Hong Kongers.

 The offer, which included other benefits for former members, would be valid until December 18, Mr Yu said.

 Newcomers would have to pay membership fees starting at $368,000, he said.

 Mr Yu said the club was expected to earn about $50 million net profit in the first year. This was based on an estimate of a $10 million profit from $20 million operating income and about $40 million from the sale of memberships.

 While the Asian financial crisis has shaved the value off golf club memberships in the region, Mr Yu said Shenzhen Tycoon's pricing of memberships was fair.

 Mr Yu expected construction work for new facilities would be completed by 2002.

 CTII has looked at investment opportunities in golf courses in other mainland cities, such as Beijing and Shanghai, with a view to establishing a chain of clubs.

 But the project has been stalled by the Asian financial crisis.

 Mr Yu said the performance of the Shenzhen golf club would provide a guide to the pace of expansion by CTII in the business.



CTII increasing investment in Shenzhen golf course to $450m