| Golf Trust of America, Inc. Acquires 18 Hole Golf Course Near Detroit, Michigan
CHARLESTON, SC, May 19, 1999 -- Golf Trust of America, Inc. (AMEX:GTA), a self-administered real estate investment trust, today reported that the Company had closed its acquisition of Metamora Golf and Country Club, an 18-hole upscale, private golf facility located in Metamora, Michigan, a northern suburb of Detroit, Michigan. The purchase price of $5.9 million consisted of cash and the issuance of operating units in Golf Trust of America, L.P. The operating units were issued in the form of convertible preferred OP Units, at a conversion price of $29.00 per share and have a preferred return of 8.25%.
The course will be leased to an affiliate of Total Golf, Inc. which is currently the lessee for GTA at Mystic Creek Golf Course and Brentwood Golf Club, two other GTA golf course facilities located outside Detroit, Michigan. 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.
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 mid-western golf marketplace such as the state of Michigan. This acquisition furthers strengthens our commitment to clustering strong performing assets in major golf markets with strategic partners."
GTA funded the acquisition with an advance from the $225 million credit facility provided by Bank of America. Including the ten courses acquired at the Initial Public Offering in February 1997, the Company has acquired interests in 46 golf courses for approximately $430 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 lessees including affiliates of the sellers. The Company currently has interests in 46 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.
To receive Golf Trust of America's latest news and other corporate developments via fax, please call 843-723-4653.
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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, risks that pending acquisitions may not close, 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-KA dated March 31, 1999.
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