Former Ponggol Marina and Ubin resort up for tender at $20m
MARINA Country Club - once known as Ponggol Marina - and a 106-room resort on Pulau Ubin have been put up for sale by tender.
The owners Marina Country Club, the former PM Marina Holdings, hope to get about $20 million for the two facilities, which sit on a combined area of 9.7ha.
Mr Lim Kien Kim of marketing agent Knight Frank said potential buyers could be existing clubs without marina facilities, those keen to run a holistic entertainment centre or investors. They can buy the marina and resort separately or as a package.
The marina has endured a rocky few years. It had been developed at a cost of about $100 million in 1997 by a small group of investors, but was then swamped by financial woes.
PM Marina bought it for $10.8 million in 2003. At the time it was burdened by debts of $18 million and offloaded by its chief creditor First Commercial Bank.
The firm relaunched the 275-berth facility later that year, slashing the one-time membership fee from the $30,000 charged in the late 1990s to just $1,500.
Then, early last year, it did away with the membership system entirely to lure more users.
‘We changed the whole format then because there was no critical mass,’ said Mr Eric Low, the marina’s adviser and former chief executive yesterday.
He said $1.4 million was spent to refund people who had joined the club after its relaunch.
Facilities were then rented out and services outsourced.
‘My concept is like a kopitiam,’ said Mr Low. ‘It’s a profitable operation but if there are people who can run it better, why not?’
The marina, which has 18 years left on its lease, was opened to the public on a pay-as-you-use system.
The company Marina Country Club struck another deal in 2003. It bought Ubin Lagoon Resort for $8.5 million. The resort, renamed Marina Country Club Pulau Ubin Resort, has a remaining lease of about six years.
Documents for the tender, which open today, show that the marina and resort have a steady rental income of about $127,000 a month. A company search showed that the firm Marina Country Club has three directors and counts as its shareholders K Box KTV, Marina Investment Holdings and Mr Quek Ngak Yeong.
Ms Fion Phua of club membership broker Tee-Up Marketing Enterprises said a club needs to be exclusive in order to be sustainable.
‘Nowadays, every condo has a pool and gym. There is no reason to go to a club unless it has unique facilities such as golf courses, a marina or stables,’ she said.
The tender closes on Sept 20.
Seeking new owners
THE company Marina Country Club, the former PM Marina Holdings, hopes to get about $20 million for the two facilities, which sit on a combined area of 9.7ha.
The former Ponggol Marina has a 275-berth facility. while the Marina Country Club Pulau Ubin Resort, which has 106 rooms, has a remaining lease of about six years.
The marina and resort have a steady rental income of about $127,000 a month.
Potential buyers can acquire the marina and resort separately or as a package.
Source : Straits Times - 20 Jul 2006
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