The client
Durham City Golf Club owns extensive land holdings, including areas that are not required for the operation of the golf course itself. With operating costs increasing as the course continues to mature, the club identified an opportunity to realise capital value from surplus amenity land.
The brief
The club owned approximately half an acre of amenity land that was not used as part of the course. Northumbrian Water utilised the land to provide access to its sewerage works, and the club wished to achieve the highest possible capital receipt from its disposal. Durham City Golf Club appointed us to value the land and manage the sale process on their behalf.
The challenge
Although the land had clear value to Northumbrian Water, it was not immediately obvious how best to maximise that value. Offering the land on the open market risked attracting limited interest, as its use was constrained and closely linked to the adjoining infrastructure.
There was also a risk that professional fees associated with valuation, negotiation, and legal work could materially reduce the net proceeds of any sale. The club, therefore, required a strategy that not only delivered a strong price but also protected the overall return.
Our approach
Rather than offering the land on the open market, we identified Northumbrian Water as a specialist purchaser for whom the land held particular strategic importance. Ownership of the land would permanently secure access to essential infrastructure. This would make it significantly more valuable to Northumbrian Water than to a third party.
We advised that a targeted negotiation with the utility provider would be more likely to achieve the club’s objectives than a traditional marketing campaign.
The outcome
Our team successfully negotiated a direct sale of the land to Northumbrian Water, securing a strong capital receipt for the club. As part of the agreed terms, we also negotiated for the purchaser to cover all of the club’s professional costs. This ensured that the proceeds from the sale were not diluted.
The transaction provided Durham City Golf Club with valuable funding at a time when operating costs were increasing as the course continued to mature. If you’re considering selling surplus land or reviewing its potential value, speak to Loxley Maynard for clear, commercially focused advice.