The 650-acre Malibu Golf Club sells in receivership for $30.5M

Buyer is a holding company connected to Beijing firm

TRD LOS ANGELES /
Aug.August 31, 2016 11:30 AM

The Malibu Golf Club, which went bankrupt for a second time last year, has sold in a receivership sale for $30.5 million.

The 18-hole property on a 650-acre site at 901 Encinal Canyon Road, nestled in the Santa Monica Mountains Recreational Area, sold to Shinhan Golden Faith International Development Limited, a holding company with major shares held by M.O. Company of Beijing, according to the Panama Papers.

The site is fully entitled for future development as a health and wellness golf institute, according to Fred Cordova of Kennedy Wilson, who represented the property’s court appointed receiver, Trigild CEO Bill Hoffman, in the receivership sale.

“This property presented a number of complex obstacles, so the receivership sale was a complicated and lengthy process with various moving parts,” Hoffman said in a statement.  “We are fortunate to have selected a solid buyer and are excited to see what the future holds for the site.”

Dick Fuld, the former CEO of Lehman Brothers, bought the $100-a-round golf club with his partners in Malibu Associates for $33 million in 2006. The partners buried themselves in debt while attempting to give the course a restoration makeover and entitling it for development. Malibu Associates defaulted on a $46.7 million loan from U.S. Bank, which tried to seize the property, according to a report last year by the L.A. Business Journal. The partners filed for Chapter 11 protection last April.

Receivership sales are an increasingly popular tool, Hoffman said.

“Because they allow properties to be sold prior to foreclosure, receivership sales often result in faster results and a higher recovery — but they can be complicated and require an extensive understanding of the court system,” he said in a statement.
Ed Sachse, Ryan Eddy, Michael Puleo and Jake Sachse of Kennedy Wilson also represented Hoffman.


Related Articles

arrow_forward_ios
William Randolph Hearst by his former home (Credit: Getty Images and Zillow)

Hearst estate owner pleads with court to let him sell mansion

Hearst estate owner pleads with court to let him sell mansion
The Beverly House (Credit: Jade Mills Estates)

Beverly House owner hopes Saudi prince is his white knight

Beverly House owner hopes Saudi prince is his white knight
Geoffrey has left the building: Toys “R” Us hires advisory firm to sell US properties

Geoffrey has left the building: Toys “R” Us hires advisory firm to sell US properties

Geoffrey has left the building: Toys “R” Us hires advisory firm to sell US properties
Robert Shapiro resigns from Woodbridge as company files for bankruptcy

Robert Shapiro resigns from Woodbridge as company files for bankruptcy

Robert Shapiro resigns from Woodbridge as company files for bankruptcy
Paul Manafort is likely to lose his LA real estate at a $4M loss

Paul Manafort is likely to lose his LA real estate at a $4M loss

Paul Manafort is likely to lose his LA real estate at a $4M loss
Toys “R” Us files for Chapter 11 bankruptcy

Toys “R” Us files for Chapter 11 bankruptcy

Toys “R” Us files for Chapter 11 bankruptcy
How brokers are making bank from retail bankruptcies

How brokers are making bank from retail bankruptcies

How brokers are making bank from retail bankruptcies
Paul Manafort’s son-in-law files for bankruptcy protection for four LA properties

Paul Manafort’s son-in-law files for bankruptcy protection for four LA properties

Paul Manafort’s son-in-law files for bankruptcy protection for four LA properties
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...