Portfolio

Tsuchiura Country Club

Inashiki-shi, Ibaraki-ken

The table below sets out a summary of selected information on Tsuchiura Country Club.

Region Greater Tokyo Region
Inaugural Year 1962
Acquisition by the Sponsor 2005
Number of holes 27 holes
Total area 814,039 m2
Attached facilities Practice area, 14 teeing grounds
Access 6 km from Metropolitan Inter-City Expressway Inashiki Exit
Appraised value
(JPY million)*1
3,790
No of Visitors FY15/16 96,033
Revenue FY15/16
(JPY million)*2
948
Utilisation Rates FY15/16(%)*3 87.5

*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 Tsuchiura Country Club is located in Inashiki City of Ibaraki Prefecture. The Ibaraki Prefecture is located in the northeastern portion of the Kanto region, which is one of the three major metropolitan areas in Japan, and it is bordered on the east by the Pacific Ocean. As at the end of December 2012, the population of Ibaraki Prefecture was 2.94 million. The number of golf course visitors was 5.45 million for the period from March 2012 to February 2013, which, despite the effects of the Great East Japan Earthquake, increased by 12% year-on-year. Inashiki City is located in the southern portion of Ibaraki Prefecture, and is approximately 80 minutes from central Tokyo. This golf course is easily accessible since it is only 6 kilometers from the Metropolitan Inter-City Expressway Inashiki Exit, and within 84.5 kilometers from central Tokyo.

Summary of the Tsuchiura Country Club

The Tsuchiura Country Club comprises the East Course (9 holes), the West Course (9 holes), and the South Course (9 holes). The East Course is relatively flat but still presents a reasonable challenge to most golfers while the West Course is characterised by a relaxed and unique layout for both the course and the greens. The South Course brings out the balanced scenery of the lake with wide viewing angles. Built over 40 years ago, a feature of the 27 holes is the surrounding pine and cedar trees, with the flat course winding between them. The courses allow various playing styles, ranging from long distance shots to strategic and accurate play.

Marketability as a Golf Course

This golf course attracts a majority of its customers from the Chiba Prefecture. Due to the opening of the Inashiki Exit on the the Metropolitan Inner-City Expressway in 2009, however, accessibility improved, requiring approximately 80 minutes' travel time from central Tokyo. It thus became possible to attract customers from a wider area. The good location of the golf course, just a 7-kilometer or 10-minute drive from the closest expressway exit, is favorable for the customers.

The number of visitors in FY2013 was 94,000 (62,000 per 18 holes), exceeding the 92,000 visitors in FY2010, before the Great East Japan Earthquake. This golf course had over 4,400 members as at the end of March 2013. In FY2013, about 34.4% of the visitors held memberships and approximately 48.7% of weekend visitors were members. Against a backdrop of the large number of members, pricing is arranged to efficiently maximise the utilisation rate, and as the caddy service is optional, most visitors opt to play without one.

Services that cater to female golfers such as ladies' tee facilities are also being introduced. Attracting customers via web reservations is also an area which is being strengthened, and in FY2013, approximately 37.1% of visitors made reservations via the web. The restaurant serves food in a café-style to reduce operating costs, and other services have been converted to self-service in order to optimise costs.