Portfolio

Daiatsugi Country Club Hon Course

Atsugi-shi, Kanagawa

The table below sets out a summary of selected information on Daiatsugi Country Club Hon Course.

Region Greater Tokyo Region
Inaugural Year 1970
Acquisition by the Sponsor 2005
Number of holes 27 holes
Total area 1,258,046 m2
Attached facilities Practice area, 12 teeing grounds
Access 7 km from Metropolitan Inter-City Expressway Atsugi Exit
Appraised value
(JPY million)*1
8,370
No of Visitors FY15/16 97,180
Revenue FY15/16
(JPY million)*2
1,406
Utilisation Rates FY15/16(%)*3 88.7

*1 Based on real estate appraisals as at 31 December 2015 conducted by the Independent Real Estate Appraisers.
*2 Revenue includes play fees (green fees and cart fees), caddy fees, restaurant charges, membership fees and other revenues from the golf course.
*3 Utilisation rate = Total no. of visitors per 18 holes/(Total operating days x 200 persons).

Location

The Daiatsugi Country Club Hon Course is located in Atsugi-shi, Kanagawa Prefecture. The Kanagawa Prefecture is located in the southwest Greater Tokyo Region, which is one of the three major metropolitan areas in Japan. The population of Kanagawa was 9.07 million as at the end of December 2012, and the total number of golf course visitors was 2.56 million for the period from March 2012 to February 2013. Atsugi-shi is almost at the center of Kanagawa, and accessibility of the course is good, being approximately 60 minutes from major locations in Tokyo. The adjacent National Route No. 412 connects to the Atsugi Exit of the Tomei Expressway and the Keno-Atsugi Exit of the Metropolitan Inter-City Expressway with a distance of approximately 11 kilometers and 7 kilometers, respectively, from the ICs. It takes about 30 minutes to reach the golf course using the shuttle bus service from the Honatsugi Station of the Odakyu Odawara Line.

Summary of the Daiatsugi Country Club Hon Course

The Hon Course has a total of 27 holes consists of the Higashi Course (9 holes), the Nishi Course (9 holes) and the Minami Course (9 holes). The Hon Course has the capability to pull in more customers through a combination of characteristics that ensure enjoyable playing.1 The Higashi Course has gentle rolling hills and allows players to swing away on broad fairways surrounded by natural features. The Nishi Course is on a wide, hilly area with significant yardage. The Minami Course is hilly with variations as represented by the 4th hole, which overlooks a valley. The locker room for men was remodeled and the locker room for women was newly constructed in 2010. An event space was also constructed in 2012.

Marketability as a Golf Course

With its good location and accessibility, customers visit the course from diverse geographic areas including large cities such as Yokohama, Kawasaki and other cities in southwest Kanagawa Prefecture, as well as Tokyo Metropolis, Chiba, Saitama and Shizuoka prefectures. The number of club members exceeded 8,000 as at the end of March 2013 (common members of both the Daiatsugi Country Club Hon Course and the Daiatsugi Country Club Sakura Course). Member visits accounted for approximately 46% of total visitors in FY2013, representing a strong and recurrent customer base. The total number of visitors in FY2013 was approximately 100,000 (approximately 67,000 on an 18-hole basis), which is significantly higher than Japan's national average of 36,069 (See "Appendix G, Independent Report on the Golf Course Industry"), reflecting the Sponsor's ability to pull in customers.

Against the backdrop of such a large body of club members, the customer base has been stable, thereby resulting in a steady number of visitors. Moreover, the utilisation rate has been stable, at approximately 91.3% in FY2011, 92.1% in FY2012 and 91.5% in FY2013.

*1 The total number of visitors to Daiatsugi Hon Course in FY2013 was approximately 100,000 (approximately 67,000 on an 18-hole basis), which is significantly higher than Japan's national average of 36,069 (see "Appendix E, Independent Report on the Golf Course Industry"), the average number of visitors per 18 holes in FY2013 for the Initial Portfolio Golf Courses and the average number of visitors per 18 holdes in FY2013 for the Initial Portfolio Golf Courses that are located in the three largest metropolitan areas in Japan. These statistics reflect Daiatsugi Hon Course's ability to pull in more customers.