NEW YORK--(BUSINESS WIRE)--Dec. 6, 2002--The investor group that has agreed to acquire National Golf Properties (NYSE:TEE) (National Golf), a real estate investment trust, and American Golf Corporation (American Golf), a privately-held company that leases and operates nearly all of National Golf's properties, today announced that Roland Smith has agreed to be CEO of each of the companies after the completion of the acquisition.
The investor group is comprised of Goldman Sachs' GS Capital Partners 2000, L.P., (GS Capital Partners), Goldman Sachs' Whitehall Street Real Estate Fund 2001 (Whitehall), Starwood Capital Group's SOF VI U.S. Holdings, LLC (Starwood Capital), and their related funds.
Smith is a highly experienced marketing and operating executive with a proven track record. He is currently President and CEO of AMF Bowling Worldwide (AMF) where he is credited with stabilizing and growing the company after GS Capital Partners recruited Smith in 1999 to execute the turnaround of AMF. He is also credited as the architect behind the successful rejuvenation of the Arby's brand during his tenure as President and CEO of The Triarc Restaurant Group. Mr. Smith's previous experience includes senior management positions in marketing and operations at Pepsi-Cola International and KFC International in Canada. He is a graduate of the United States Military Academy at West Point, where he earned a B.S. in engineering.
We are delighted that Roland Smith will lead American Golf. With Roland and our senior management team in place, we are in an excellent position to continue to grow this extraordinary platform in the golf industry, said Henry Cornell, Managing Director of Goldman Sachs. We firmly believe that having a proven, dynamic, people and customer-oriented leader like Roland at the helm of American Golf will allow us to deliver an exceptional golfing experience to our members and guests, Cornell said.
Merrick Kleeman, Senior Managing Director of Starwood Capital Group, added, Roland's experience in managing and leading multi-unit facilities made him a particularly attractive candidate to the board. Roland has a proven track record of creating successful and dynamic companies focused on employee satisfaction, customer service and quality. We believe Roland will take advantage of the company's unparalleled collection of assets and its talented and dedicated team to lead this industry into the future.
I look forward to working with the management team at American Golf to position the company for further growth and take advantage of golf's popularity, said Smith. The golf industry has significant untapped potential and I am excited about leading the world's largest operator of golf courses. This made the difficult decision to leave my colleagues at AMF easier, he added.
Smith will be charged with stabilizing and growing the business at the company's golf facilities, a task he has mastered in related fields throughout his career. I will be working very hard on the people side of the equation, to inspire, train and retain the level of management that is critical to our success, our managers and our staff. Collectively, we will be absolutely committed to delivering an outstanding golf experience at all of our facilities, Smith said.
The proposed transactions are valued at approximately $1.0 billion including all existing National Golf and American Golf indebtedness. The transactions are expected to close in early 2003, subject to customary closing conditions including National Golf shareholder approval at a vote scheduled for December 18, 2002.
About Goldman Sachs, GS Capital Partners and Whitehall
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
GS Capital Partners is the current primary investment vehicle of Goldman Sachs for making privately negotiated equity investments. The current GS Capital Partners fund was formed in July 2000 with total committed capital of $5.25 billion, $1.5 billion of which was committed by Goldman Sachs and its employees, with the remainder committed by institutional and individual investors. Whitehall is the current primary investment vehicle of Goldman Sachs for making privately negotiated real estate investments. The current Whitehall fund was formed in early 2001 with total committed capital of $2.5 billion, $550 million of which was committed by Goldman Sachs and its employees, with the remainder committed by institutional and individual investors.
About Starwood
Since its inception in 1991, Starwood Capital Group Global, LLC and its affiliates (collectively, Starwood) have raised over $2.5 billion of private and institutional capital for transactions representing over $7.5 billion worth of real estate and related assets. Starwood has specialized in building operating companies around its core real estate portfolios, including three of the nation's largest publicly held real estate companies: the recapitalization, reorganization and expansion of a REIT in 1995 to become Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), a leading global owner/operator of hotels with brands such as Sheraton, Westin, The St. Regis Luxury Collection and W; contributing a large mezzanine debt portfolio to create what is today iStar Financial, Inc. (NYSE: SFI), the nation's largest publicly-owned finance company focused exclusively on commercial real estate; and helping to capitalize, at its formation, Equity Residential Properties Trust (NYSE: EQR), the nation's leading multifamily REIT.
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