According to Drive Shack CEO Hana Khouri, the company has a “very active and robust pipeline” of potential new Puttery sites but it needed “around $75 million” by the beginning of the first quarter of fiscal year 2022 to complete the plan.
The “plan” calls for 10 Puttery venues to be under development, or in lease, by the end of next year, as well as begin construction on a Randall’s Island (N.Y.) Drive Shack venue.
Khouri has consistently said the first Puttery venue – and interactive mini-golf concept – will open later this summer at The Colony near Dallas, Texas.
“We expect to access the debt capital market and are confident we can obtain the necessary funding to complete our 2022 plan,” said Khouri.
“We are currently pursuing all options and expect we will use our over $200 million of unencumbered entertainment venue assets, which are performing increasingly well to help secure the required funding if needed.”
Drive Shack reported Q2 2021 revenue of $61.7 million and a loss $1.2 million. For the six months, the company reported revenue of $115 million and a loss of $12.8 million.
The company’s American Golf unit, which leases and manages approximately 70 courses nationwide, accounted for more than $73 million of that six-month revenue.
Khouri said the $75 million is incremental to the $10 million that PGA Tour star Rory McIlroy and his investment group has committed to invest in the future development of new Puttery venues between now and the end of 2023.