| Golf Trust of America Inc. Acquires 27-Hole Golf Course Near Lake of the Ozarks, Missouri
CHARLESTON, SC, September 2, 1998 -- Golf Trust of America, Inc. (AMEX:GTA), a self-administered real estate investment trust, today reported that the Company had closed its acquisition of Osage National Golf Course, a 27-hole upscale daily fee golf facility located near Lake of the Ozarks, Missouri for $11.2 million. The purchase price includes the issuance of operating partnership Units in Golf Trust of America, LP valued at approximately $3.5 million. Osage National was recently rated by Golf Digest's "Places To Play" as one of only four four-star public courses in the state of Missouri.
The golf course will be leased to the prior owner of Osage National. The initial term of the lease will be for 10 years with 4 five-year renewal options. The triple-net lease is structured to permit GTA to participate in increased revenue at the facility.
Commenting on the acquisition, W. Bradley Blair, II, President and Chief Executive Officer of Golf Trust of America, Inc. said, "We are very pleased with this acquisition, which continues GTA's strategy of growth for 1998. The acquisition of the nationally recognized Osage National represents the continued success and acceptance of GTA's sale/leaseback program with upscale golf course owners in the United States."
The Company funded the acquisition with advances from the $100 million bridge facility provided by Nationsbank and Bank of America. For the year, the Company has acquired fifteen golf courses for approximately $185 million. Since its Initial Public Offering in February 1997, the Company has acquired interests in 28 (18-hole equivalent) golf courses for approximately $315 million.
Golf Trust of America, Inc., with headquarters in Charleston, South Carolina, is a self-administered REIT formed to capitalize on the consolidation opportunities in the ownership of golf courses in the United States. The Company's business strategy is to acquire high quality golf courses and lease them to qualified third party operators, including affiliates of the sellers. The Company currently has interests in 38 courses throughout the United States including the following states: Alabama, California, Florida, Georgia, Illinois, Kansas, Michigan, Missouri, Nebraska, New Mexico, North Carolina, Ohio, South Carolina, Texas and Virginia.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors including general economic conditions, competition for golf course acquisitions, the availability of equity and debt financing, interest rates and other risk factors as outlined in the Company's SEC reports, including the prospectus dated November 4, 1997 and the annual report on Form 10-K dated March 31, 1998.
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