Sydney-based Kingdom Developments confirms it is looking to pull out of Longyard Golf Course deal in Tamworth

It is unclear at this time what this means for plans to redevelop the golf club, which were supposed to include landscaping the grounds, improving the clubhouse, and renewing The Mill Tavern.

Executives from Kingdom Developments told the Leader the relatively high cost of borrowing has forced them to pull out.

"With all the interest rate rises, we just weren't able to make it work," Head of Project Delivery and Finance Andrew Bodnar on Tuesday.

He said efforts to raise capital, or to renegotiate the sale price, have both been unsuccessful.

"We've been trying to find different lenders to fund it, but nobody wants to fund it at the moment, so at the moment we're at liberty of the owner and the owner is not able to accommodate what we need to make it work," Mr Bodnar said.

The current owner John O'Rourke says Kingdom Developments is on the hook for the sale, regardless of any financial concerns.

"We hold an unconditional contract with Director's guarantees for specific performance, so you can't just pull out of a contract because you feel like it. It was not subject to finance or anything else, anything at all. It is an unconditional contract," Mr O'Rourke told the Leader.

READ ALSO:

He also denied any fault on the part of his company, Dromahair Pty Ltd, and suggested Kingdom Developments could face legal action if they don't come to the table.

"The Kingdom guys are going to be in a world of hurt by the time this thing's complete," Mr O'Rourke said.

"At the moment they're suggesting they're pulling out, but you can't pull out of an unconditional contract."

The deal was supposed to go through in December 2022, but on December 20 members received a letter from Mr O'Rourke which said the deal had been delayed.

"Kingdom Developments have been provided a three month extension as per contract conditions," the letter seen by the Leader read.

But less than three weeks later, two executives from the Sydney-based developer confirmed to the Leader the deal's demise, citing a lack of investor interest in completing the multi-million-dollar sale.

"The valuation wasn't sufficient for the purchase in the current market and we couldn't secure funding for it," Kingdom's Head of Acquisitions and Development Executive Sean Tng said.

The 18-hole Longyard course was designed by Greg Norman and Bob Harrison, and also features The Mill Tavern and clubhouse.

The Leader also contacted the selling agent who was unable to provide further detail.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: