| Golf Trust of America Acquires The Pete Dye Golf Club
The Pete Dye Golf Club, ranked No. 2 in Golf Week’s Top 100 courses of the Modern Era, is the 47th golf course acquired by Golf Trust of America, Inc.
Charleston, SC, August 2, 1999 – Golf Trust of America, Inc. (AMEX:GTA), leader in the ownership of premier golf properties, reported today that it has acquired The Pete Dye Golf Club for $10 million. The Pete Dye Golf Club is arguably the finest golf destination retreat in the country, nestled in the mountains of north central West Virginia.
Since its official opening in 1995, The Pete Dye Golf Club has been honored in both Golf Digest and Golf Magazine’s Top 100 Courses in America, as well as Links magazine’s Top 10 courses of the last 10 years. Golf Week’s Top 100 Courses of the Modern Era ranked the course No. 2 out of over 9,000 courses built since 1960. Pete Dye, world-renowned for his challenging and intriguing course design, stated, "There’s nothing like it. It’s 18 of the most exciting and memorable golf holes I have ever built on one course." The course covers the site of an old mining operation and is combined with the spectacular terrain of the West Virginia hills.
W. Bradley Blair, II, President and Chief Executive Officer of Golf Trust of America, Inc., adds, "The Pete Dye Golf Club ranks at the very top of clubs in the country and further enhances Golf Trust’s growing portfolio of 47 premier golf facilities. We also recognize the value of owning one of Pete Dye’s highly regarded creations, and reaching a national membership base in major markets such as New York, Cleveland, Columbus and Washington. D.C. "
The purchase price of $10 million includes the purchase of the 18-hole golf course and a new 42,000 square foot clubhouse. The purchase price includes secured financing from City National Bank of West Virginia, and the issuance of convertible operating units in Golf Trust of America, LP valued at approximately $1,350,000. The course will be leased to the LaRosa family. James J. LaRosa, President and Founder of The Pete Dye Club, enthusiastically stated, "We are delighted and honored to be partnered with Golf Trust and providing our members with the best private club experience." The initial term of the lease will be ten years with four five-year extensions, and is structured to permit GTA to participate in increased golf and food and beverage revenues at the facility.
Established in 1997, Golf Trust of America Inc. is a self-administered real estate investment trust, or REIT, formed to capitalize on the consolidation opportunities in the ownership of golf courses in the United States. Golf Trust of America’s portfolio contains 47 golf facilities, operated by 19 lessees, with locations in 17 states (Alabama, California, Florida, Georgia, Illinois, Kansas, Kentucky, Michigan, Missouri, Nebraska, New Mexico, North Carolina, Ohio, South Carolina, Texas, Virginia and West Virginia).
More information on Golf Trust of America and associated golf courses may be found on its web site at www.golftrust.com. Golf Trust stock is publicly traded on the American Stock Exchange (AMEX:GTA). Information on national memberships to The Pete Dye Golf Club is available by calling 304-842-2801.
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 statement 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/A dated March 31, 1999.
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