Members of Sand Martins Golf Club in Wokingham are celebrating after a unique finance initiative saved the club from developers. With the support of Lloyds TSB Corporate, managing director and PGA pro Andrew Hall was able to rally members and secure Sand Martins’ future.

In an innovative deal, Hall and his members’ consortium joined forces in what is believed to be the first joint management and membership buy-out in UK golf.

Sand Martins was founded in 1991 when former owner Edward Fox bought the 120 acre site on Finchampstead Road and opened the golf club two years later. Course and business have matured together, with over 700 members now enjoying what is widely regarded as one of Berkshire’s top clubs.

However, following ill health, Fox made the decision to sell and the club quickly came to the attention of property and leisure developers. Following the demise of nearby Aspect Park private members golf club near Henley, which closed within months of a buy-out and is now being redeveloped as a hotel and leisure facility, Hall feared for Sand Martins’ future.

“The golf business can be profitable, but it’s a slow burner,” explains Hall. “There’s no quick financial return, and for a lover of the sport like me that’s not an issue. But this is a prime site, and developers have an eye for the future. Of course I don’t know what their plans might have been, but I strongly suspect Sand Martins would not have remained in its present form for long.”

Given just 12 months to raise the funds, Hall turned to Peter Taylor, Lloyds TSB Corporate’s senior relationship manager in Newbury, for help. “The bank has supported Sand Martins since it was first established, and Peter was our first call,“ Hall says. “He was very receptive to our funding plans and we successfully negotiated a part-financing strategy to make the buy-out possible.”

Under the scheme, 110 members bought shares in the club, spending between £2000 and £40,000. Hall himself now has a 75% stake after contributing over £2m of his own money to take a controlling interest.

Peter Taylor says: “We had to move quickly to put the necessary arrangements in place for the deal, but thanks to our close partnership with Andrew and his team the buy-out was achieved successfully.

“As a local businessman and a keen golfer, I was very pleased to have been involved in supporting this Berkshire institution. It’s a testament to Andrew’s management that his members have been willing to invest substantial amounts of their own money in maintaining the club as it currently operates.”

Given the complex nature of the deal, expert advice was crucial to its completion and Lloyds TSB Corporate called on the services of Newbury-based solicitors Charles Lucas & Marshall to ensure that security and legal requirements were met.

“We were delighted that the bank chose to work with us on this transaction and that we were able to assist in sinking the winning putt,” says Lance Parker of Charles Lucas & Marshall.

With the future of Sand Martins now secured, Hall has been turning his attention to sporting achievement, competing in the final qualifying round for the British Open at St Andrews. “It’s been a rollercoaster ride over the last few months, but winning through to play for a place in the Open has just been the icing on the cake,” he says. “2005 will definitely be one to remember for Sand Martins, and I’m looking forward to making sure that the club continues to offer its loyal members a great golfing experience over the years to come.”

For more information contact Stewart McMinn, Head of the Corporate Services Team, on 01635 521212 or smcminn@clmlaw.co.uk