EAGLE to keep courses leased from CNL

Dallas, Texas-based course management company EAGLE Golf will apparently continue to operate most, if not all, of the 43 golf course properties it currently leases from CNL Lifestyle Properties.

In a filing last month with the Securities & Exchange Commission, the real estate investment trust (REIT) had indicated that EAGLE would have to meet one or more criteria for recapitalization or acquisition inorder to retain its leasehold status with the CNL properties. The parties, however, have reportedly negotiated a mutually agreeable arrangement that allows EAGLE to continue to lease and operate the CNL properties.

At issue were a series of monthly lease payments by EAGLE that CNL had agreed to defer, beginning in June 2008, in recognition of both regional weather-related hardships and economic conditions impacting golf course operators nationwide.

Some in the industry had characterized those actions as defaults, but both CNL Lifestyle Properties Vice President for Investments Rudy Anderson and EAGLE CEO Joe Munsch said that was not the case.

"EAGLE is not currently in default with CNL, nor have weever been in default with CNL," Munsch said. "In any lease situation, there are frequently ongoing negotiations on the terms and this was no different. What's happened is that we are working things out with CNL, and it looks like most or all of the [43-course CNL] portfolio will stay with EAGLE."

Anderson said he expected that the majority of the courses will remain under EAGLE management.

"We recognize that conditions as a whole are difficult for the [golf] industry currently, and we certainly continue to feel that EAGLE is an excellent operator," he said.

Both acknowledged that a few individual courses or perhaps a small cluster of courses could be assigned to a different operator in the future if it makes sense to do so. But for the time being, no changes are expected.

CNL Income Company currently owns 54 golf properties, making it the third largest owner of golf courses in the U.S. behind ClubCorp and American Golf Corporation. EAGLE currently owns or operates a total of 79 golf properties.


Our club is struggling and in the southeast,can someone give a reference on what companies have equity to invest in exchange for a management contract

What would be the impact on the industry if club corp buys Troon.Would jobs be lost in Arizona,Club Corp is texas based

To the person who posted 9/25 that their club is struggling in the South East. We can help your club. Give us a call or email me. Thanks, -McRedmond

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