Gunma Golf Course For Sale

Price: 150,000,000 JPY
Size: 664,690 sqm

SOLD

A par-72, 18 hole hillside golf course is for sale in Gunma Prefecture. The property is spread over 66 hectares and is a 2 hr drive west of Tokyo.

The grounds include a 4-storey clubhouse / hotel with an interior size of 5697sqm (61,300 sqft) and 37 rooms that can accommodate 150 guests. The golf club officially closed down in 2007 and has not been maintained since then.

The Kanna Golf Club (originally called the Honjo Golf Club) opened in April, 1990, at the peak of the Japanese bubble. In 1996, the club had annual gross sales of 470 million Yen (5.6 million USD).

Plagued by bankruptcies

The golf course planning actually began back in 1973 when Manba Kogen Kaihatsu received construction approval. The course was to be called Kannako Country Club. However, Manba Kogen filed for bankruptcy in 1976 and the course was taken over by Tano Golf Club Corporation. Tano Golf Club later filed for bankruptcy and the course was purchased by Honjo Golf Club who finished the construction and opened it for business in 1990.

Golf membership sales started in 1984 and they had amassed over 2000 members. The deposit fees ranged from 2.5~8 million Yen and a total of 4.5 billion Yen in deposits were held by the operator.

Despite the 470 million Yen in gross sales reported in 1996, the company had a net loss of 80 million Yen. They had been running in the red since 1995. By 2002, gross annual sales had fallen to 230 million Yen.

The demise

In 2003 the operator filed for bankruptcy with debts of 5 billion Yen and the course was purchased by “Total Green” for 92,000,000 JPY. In 2008 the course closed down and was put up for public auction due to unpaid city taxes. No bids were received so the property was passed in at auction.

In mid-2009 it was again put up for public auction with an estimated price of 35,390,000 JPY (426,000 USD). The winning bidder was “Nihon Trading” who bid 39,390,000 JPY, but they failed to make payment for the property so it went to the second bidder, “NM Corporation” for 38,550,000 JPY. As of late 2009, NM Corporation had plans to refurbish the property and re-open the course but it appears they have given up on their plans.

The asking price of 150 million Yen is almost 4 times the price paid at auction, so either a lot of work was done on the property (judging by the photos this does not seem likely) or someone is looking to flip it for a good profit. The only challenge is finding a buyer brave enough to take on a non-operational golf course. There may be possibilities to convert it into a solar farm, resort village or use as a corporate training facility or retreat.

Details:
– Price: 150,000,000 JPY
– Land size: 664,690 sqm (66 hectares)
– Clubhouse size: 5697 sqm (61,300 sqft)

Location:
2203, Shori, Kannamachi, Tano District, Gunma Prefecture, Japan
2 hrs drive from Nerima Interchange

179 total views, 3 views today