Members’ passion makes The Cut

THERE are plenty of residential developments that have a golf course as their focal point – and the Mandurah area has its fair share.

But unlike a housing estate, which nestles itself into the undulating fairways, the relationship between The Cut golf course and the luxury apartment complex Oceanique is quite distinctive.

Oceanique towers over the well-appointed clubhouse, which sits at the centre of the 18-hole links course, part of which wends its way through a traditional housing estate while part of the course jumps through the dunes and skirts the coast, enveloping the high-rise development.

It is not just geographic relationship.

The Cut was established by listed property developer Port Bouvard as part of its development of the area south of the Dawesville Cut, which included Oceanique.

In headier times, a membership to The Cut and $10,000 bar tab at its clubhouse were part of the deal, which Oceanique offered investors buying apartments off the plan.

The good times were truly rolling then. Englishman John Kelly was paid around $12 million for the golf course, a price Port Bouvard could not turn down.

But the euphoria around property and development in Mandurah wasn’t to last, just as Mr Kelly’s ability run the club like an expensive hobby also was not sustainable.

“There is only one John Kelly,” said Terry McIntyre, part of a syndicate of members who bought the club from the receivers a little more than 12 months ago.

Mr McIntyre is, of course, paraphrasing Kerry Packer’s line about Alan Bond’s purchase of Channel Nine in the late 1980s. The difference is that, unlike Mr Packer’s repurchase of Nine for less than he sold it for, Port Bouvard was in no position to buy back the golf course when Mr Kelly went bust, even if it wanted to.

Instead it was the members who picked up the course in a mortgagee sale at a time when the global financial crisis had made it a buyer’s market.

But the knock down price paid by the members was not a steal. Making money out of golf courses is difficult, and the owners acknowledge that they are only starting to get their heads above water after the damage done by the previous management.

The advantage the members have is a state-of-the art facility, which they have improved to better accommodate functions.

While the course sits at the southern edge of Mandurah’s development, it does have the advantage of lacking competition from established hospitality venues, allowing it to grow its restaurant and bar trade to supplement golf income and provide a lively feel for members.

The club has lured Declan McCollam back from the UK to run the club, allowing the syndicate members to step back from day-to-day decisionmaking.

Mr McCollam is keen to remind golfers that The Cut is one of the nation’s premier courses.

The odd synergy with Oceanique is playing a part in that, as Port Bouvard looks to promote its luxury living in a tough market.

This week, as part of the Mandurah Mazda PGA Pro Am at The Cut, at five PGA professionals will tee off from the 5th floor podium rooftop of Oceanique down to The Cut’s practice putting green right in front of the clubhouse to try to win a $2,000 prize.