Pacifc Links looks for partner for Makaha

China's economy worries company
  • Tiger Woods and Du Sha

Pacific Links International, a reciprocal golf course network with more than 17,000 members in China, has hired CBRE Golf and Resort Group to assist with the recapitalization of Mākaha Valley Resort in Oahu, Hawaii. CBRE will evaluate all strategic options. 

The Chinese company acquired Mākaha almost five years ago, and last year announced that Tiger Woods would design one of two new courses for the long-planned redevelopment of the shuttered course. Gil Hanse is scheduled to design the other course. These two courses are expected to be the center pieces of a 644-acre, mixed-use property. The original plans called for a wellness center, time-share and residential units, vacation villas, and restaurants. 

But the company, which is owned by Du Sha, is concerned about the economy in China. 

“China’s economic forecast over the coming three years has encouraged us to consider our options in relation to Mākaha Valley Resort and we have concluded that recapitalisation utilizing non-Chinese sourced capital gives us the best chance to achieve our vision for the destination,” said Rudy Anderson, President and Chief Executive Officer of Pacific Links.

“Chinese companies with offshore holdings are currently facing pressures as the government increases capital controls in response to macro-economic issues and the depreciation of the national currency, the renminbi. Many companies are looking to alternative sources of financing major projects as moving money out of the country becomes more difficult, and Pacific Links International is no different in this regard as its primary source of revenue is generated in mainland China.”

While Pacific Links says it is still committed to its stewardship of the Mākaha area, it is concerned the macro-economics will not allow it to fully capitalize the development and stay on the current timelines. 

Pacific Links said all development work under Stanford Carr Development will be unaffected, however, the project’s residential scope and amenity mix may be adjusted once a new partner is identified. 

When Pacific Links first burst onto the scene in 2009, it was acquiring golf courses in the U.S. However, it reversed strategy and began selling courses in 2016 after Rudy Anderson took over as CEO. It has instead focused on reciprocal agreements. 

Pacific Links has developed a large customer base in China. Since 2012, its network of affiliated and reciprocal clubs has grown to more than 400 properties in more than 37 countries. 

This is not the first time Pacific Links has hesitated on Mākaha. In 2015, it announced a $200 million renovation of the resort, with Greg Norman leading the course redesign. A year later, it was announced that the proposal had been upped to $300 million. But those plans were placed on hold. 






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