Shinsegae Development's Yangsan Eden Valley Resort (hereinafter Eden Valley CC) will be sold to the golf corporation Ramid Group for 120 billion won. Eden Valley CC had previously attempted to sell twice, and after the third attempt, the sale and purchase agreement (SPA) was successfully concluded.
According to the investment bank (IB) industry on the 15th, Ramid Group, the preferred negotiation partner for the acquisition of Eden Valley CC, recently signed a SPA regarding the acquisition of the resort for 120 billion won.
Eden Valley CC consists of an 18-hole membership golf course, seven ski slopes, villas, and tower-shaped condos. In February of last year, it filed for corporate rehabilitation with the Seoul Rehabilitation Court, and Samjeong KPMG is responsible for the sale.
Shinsegae Development's push to sell Eden Valley CC was the third attempt. During the first attempt last year, regional construction companies and operators of Yangsan-area golf courses entered the bidding, but it fell through as they offered prices lower than the desired selling price. In the second sale, conducted through the stalking horse method, the primary buyers struggled with financing, ultimately leading to failure. Following this, the sellers received court approval and shifted to a public sale method at the beginning of this year and have been negotiating with Ramid Group.
Ramid Group is a golf corporation that operates Yangpyeong TPC, Namyangju CC, Flamingo CC, and M's Club Namsong CC. Last year, it also acquired Club D Silok Mountain for 5 billion won per hole.
Ramid Group was expected to finalize the SPA as early as February, but the contract has been delayed due to slow negotiations. The sellers submitted a request to the court for an extension of the investment contract deadline on the 30th of last month and the 9th of this month.
In the IB industry, it is assessed that Eden Valley CC has been sold for a price that exceeds market expectations. An industry insider noted, "Recent investment sentiment in golf courses has become conservative unless in the metropolitan area," adding, "Nonetheless, Ramid Group appears to have substantially met the seller's expectations."
Since a SPA has been concluded, a rehabilitation plan is expected to be submitted to the court soon. Following this, procedures to obtain consent from the creditors holding memberships will follow. The deal closure is expected to occur before August.