Walters reveals stake in golf course firm

Monday, July 22, 2002 | 11:03 a.m.

SUN STAFF AND WIRE REPORTS

National Golf Properties Inc. investor Walters Group disclosed holding a 9.6 percent stake in the largest publicly traded U.S. golf course owner.

Las Vegas-based Walters Group, controlled by investor Bill Walters, said it bought about 1.3 million shares in open market purchases using working capital, according to a Schedule 13D filed Friday with the Securities and Exchange Commission.

Walters Group didn't say in the filing when the shares were acquired or at what price.

In May, National Golf agreed to sell 17 of its courses for $107.6 million this year after defaulting on its debt in 2001. The company has sold 11 courses for $45.2 million, led by the April sale of the Hershey Country Club South and Hershey Country Club in Hershey, Pa., for $20.8 million.

Santa Monica, Calif.-based National Golf shares were down 39 cents to $11.61 today, a loss of about 3.25 percent from Friday's close. The shares are down 54 percent since last July after the company revealed that a decline in the business of its main tenant, American Golf Corp., triggered a default on both companies' debt.

National Golf has since announced a plan to merge with closely held American Golf, which managed 133 of the company's' 137 courses before the recent sales.

In Las Vegas, National Golf and American Golf operate the Wildhorse, Painted Desert, Badlands, Desert Rose, Las Vegas Golf Club and Las Vegas National courses.

Walters, who could not be reached for comment, owns the Stallion Mountain Country Club, Desert Pines Golf Club, Bali Hai Golf Club and the Royal Links Golf Club in Southern Nevada.

The firm is developing El Grande Hombre, a southwest Las Vegas course expected to open next year.