SIAS levels queries to Accordia Golf Trust over planned stake sale

It questioned whether they will consider disposing underperforming assets vs its entire portfolio.

The Securities Investors Association (Singapore), or SIAS, has asked golf course operator Accordia Golf Trust to address concerns over its planned divestment of all its interests in its golf courses to Accordia Golf.

In a letter posted on its website, SIAS asked Accordia Golf Trust whether its independent committee has reviewed the reliability of its valuation reports. This is on the back of Accordia Golf Trust’s earlier divested property Village Higashi Karuizawa Golf Course at a gain of more than four times its appraised value.

SIAS also questioned whether the company has considered delaying the transaction given the ongoing pandemic, which has negatively affected valuations of golf courses. They also suggested the inclusion an earn-out based on future profits “so that unitholders do not get shortchanged by entering into a disposal of the prime assets when the market sentiments are weak.”

Further, the independent committee is being asked whether it has considered just disposing underperforming golf courses and keeping its core assets versus an outright sale of the entire portfolio.