As reported in the Globe and Mail, members of the Beacon Hall Golf Club are looking at a new $260-million dollar offer from Harlo Capital to acquire the 200-acre property. Members previously turned down a $250 million offer.
In a letter of intent, rather than a binding contract, Harlo offered to pay $110-million down. It then asked Beacon Hall members to accept a note for a $150-million mortgage that would initially pay 1.5-per-cent interest, and rise over time to 3 per cent. Harlo is pitching members on collecting interest payments that could potentially cover the cost of their annual golf fees. They could continue to play for the three to five years it is expected to take the developer to obtain the necessary permits.
The club’s board has been fielding buyout offers for more than two years, and the debate over the property’s future now splits the membership. The club’s rules require that two-thirds of members approve its sale and the board will evaluate the current offer.
