| Golf Trust of America Inc. Acquires Two Upscale Golf Courses Near Orlando, Florida
CHARLESTON, SC, September 21, 1998 -- Golf Trust of America, Inc. (AMEX:GTA), a self-administered real estate investment trust, today reported that the Company had closed its acquisitions of Wekiva Golf Club and Sweetwater Country Club located near Orlando, Florida. Wekiva, a semi-private course, and Sweetwater, a private club, are two upscale, 18-hole facilities, located within two miles of each other, effectively giving the market a 36-hole complex under one management.
Both properties will be leased to Diamond Players Cub, a professional golf management company whose headquarters will be located at Sweetwater Country Club, according to Todd Stottlemyre, Chief Executive Officer. "The two will be treated in a unique fashion to maximize the value of membership for both facilities," explained Gregg Gagliardi, Chief Operating Officer. Stottlemyre is a professional baseball player with the Texas Rangers and Gagliardi is a PGA Golf Professional.
The initial term of the lease will be 10 years with 4 five-year renewal options. The triple-net lease is structured to permit GTA to participate in increased revenues at both facilities.
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 to enhance our multiple independent lessee structure. Our relationship with Diamond Players Club should provide the Company with additional acquisition opportunities in the future. The acquisition of two more upscale facilities, along with Black Bear Golf Club, another GTA facility near Orlando, further enhances our position in the Orlando market."
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 seventeen golf courses for approximately $198 million. Since its Initial Public Offering in February 1997, the Company has acquired interests in 30 (18-hole equivalent) golf courses for approximately $326 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 40 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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