Posted on: Wednesday, October 27, 2004

Makaha-East course to be sold

By Andrew Gomes
Advertiser Staff Writer

The owner of Makaha Valley Country Club has notified the state that it plans to sell the golf course known as Makaha-East on Dec. 24 to an undisclosed buyer.

Nitto Hawaii Co. Ltd., an affiliate of financially troubled Japan-based golf operator Nitto Kogyo Co. Ltd., said it expects 53 employees at the course to be rehired by the purchaser.

The sale, if completed as expected, would follow the purchase earlier this year of Makaha-East's former sister course and hotel, Makaha Resort Golf Club, by Canada-based hotel and time-share operator Fairmont Resort Properties Ltd.

The two 18-hole courses were developed in the late 1960s by Hawai'i financier Chinn Ho, who sold Makaha-East and surrounding property to Nitto Kogyo in 1982 for $6.5 million.

In December 2001, Goldman Sachs Group acquired Nitto Kogyo, which owned 30 golf courses in Japan and was burdened with debt. The golf operator sought court protection from creditors and had been trying to restructure its finances.

One person familiar with Makaha-East operations estimated that the 18-hole course, which includes land suitable for development, would sell for at least $4 million.

Golfers in 2002 played about 45,000 rounds at the course, according to Nitto Hawaii. About 80 percent of players were kama'aina, the company said.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.