Inclusive golf course raises 500,000 euros via crowdfunding for expansion in 14 days

Martyn Clapham
By Martyn Clapham September 14, 2015 14:29

An organisation that is building an inclusive golf course in Munich is raising a significant proportion of the capital via crowdfunding for what is thought to be the first time in golf history.

Crowdfunding involves funding a project or venture by raising monetary contributions from a large number of people via the internet. Everybody who invests money will receive some form of ownership in the new project.

GolfCity München Puchheim promises golf near Munich city centre without high membership fees or restrictive access. It follows on from an already successful model – GolfCity Köln Pulheim, near the centre of Cologne, “where everyone can participate without pressure and elitist constraints, but with good humour in a friendly, sporting atmosphere,” said a spokesman.

crowdfunding ron mader

Image by Ron Mader

GolfCity München Puchheim aims to be built on the site of a former landfill to the west of Munich, and will feature a nine-hole course, a three-hole course and training facilities including a driving range.

The goal of the campaign was to collect a total of 750,000 euros within 90 days and after 14 days the venue has already collected 500,000 euros.

“We are overwhelmed by how readily customers have embraced this new, innovative idea. In addition to the fact that, after 14 days we had already exceeded the 500,000 euros threshold, the feedback has been consistently positive,” said spokesman Marcus März. The German golf market and particularly the GolfCity concept offer “considerable potential compared to other international markets.”

The goal of the campaign is to apply the 750,000 euros in the form of profit-participating subordinated loans from investors towards the second and third stages of construction of GolfCity München Puchheim. In addition to confidence in the company and an interest in the golf product, investors are being enticed by four percent dividends paid biannually, a performance bonus of up to two more percent, collateralisation of the investors’ money through the leasehold and many attractive perks for active golfers.

Ulrich Kastner, board member of CityGolf parent company Clubhaus AG, is convinced that established suppliers have long applied a faulty golf course concept “aimed at only premium customers” – a circumstance that makes classic financing by banks much more difficult for course developers. The German golf market and particularly the GolfCity concept offer considerable “potential to catch up when compared to other international markets.”

 

Martyn Clapham
By Martyn Clapham September 14, 2015 14:29
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