| Golf Trust of America Inc. Acquires Another 18-Hole Golf Course in Southern Florida
CHARLESTON, SC, September 30, 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 Cypress Creek Country Club, an 18-hole semi-private golf facility located in Boynton Beach, Florida (Palm Beach County) for $4.2 million.
The golf course will be leased to an affiliate of Emerald Dunes Golf Group. The initial term of the lease will be 10 years. The lease is structured to permit GTA to participate in increased golf, merchandise, and food and beverage revenues 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 excited about this acquisition. The addition of Cypress Creek to our portfolio further demonstrates our ability to grow strategically. Leasing this property to Emerald Dunes Golf Group, who now operates 5 courses owned by Golf Trust, solidifies our philosophy of clustering with a quality operator in an attractive geographic region. The economies of scale and cross-marketing opportunities for Cypress Creek are significant when combined with the other Golf Trust/Emerald Dunes courses of Polo Trace Golf Club, Bonaventure Golf Courses (36 holes), and Emerald Dunes Golf Course. The championship course at Cypress Creek was designed by noted golf architect Robert Von Hagge."
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 eighteen golf courses for approximately $202 million. Since its Initial Public Offering in February 1997, the Company has acquired interests in 31 (18-hole equivalent) golf courses for approximately $330 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 41 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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