| Golf Trust of America Inc. Acquires 18-Hole Golf Course near Columbus, Ohio
CHARLESTON, SC, October 14, 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 Cooks Creek Golf Course, an 18-hole upscale, public golf facility located in Ashville, Ohio, near Columbus, for $6.1 million.
The golf course will be leased to Cook/Rainieri Management. The initial term of the lease will be 10 years with four 5-year extensions. The lease is structured to permit GTA to participate in increased golf, merchandise, and food and beverage revenues at the facility.
Cook/Rainieri Management consists of John Cook, his father Jim Cook, and John Rainieri. John Cook, an Ohio State alumnus, teamed with fellow Buckeye, architect Michael Hurdzum, Ph.D., to create a course on land once farmed by Cook's father and grandfather. John Cook is a veteran of the PGA Tour, having turned professional in 1979. John was a member of the 1993 Ryder Cup team, and won the 1998 Byron Nelson Classic. He has 10 PGA Tour victories, and is ranked 15th on the all-time PGA money list with over $7 million in earnings. Jim Cook has been a tournament director with the PGA for over 20 years. He has been involved as tournament director for events such as the NEC World Series of Golf, the Las Vegas Invitational and the Senior Slam. John Rainieri currently leases two other GTA courses in the Akron market. This is the first project for the three to manage together.
Commenting on the acquisition, W. Bradley Blair, II, President and Chief Executive Officer of Golf Trust of America, Inc. said, "We are very pleased to be able to acquire this upscale course in such a strong golf marketplace. Furthermore, the new expanded strategic relationship with the combination of the management strengths of John Cook, Jim Cook and John Rainieri should provide extraordinary results for this acclaimed property."
The Company funded the acquisition with an advance from the $100 million bridge facility provided by Nationsbank and Bank of America. For the year, the Company has acquired 19 (18-hole equivalent) golf courses for approximately $208 million. Since its Initial Public Offering in February 1997, the Company has acquired interests in 32 golf courses for approximately $336 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 42 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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