Doohwa Construction is seeking a buyer for Tiger Country Club (CC), a public golf course located in Paju, Gyeonggi Province, amid soaring valuations for domestic golf courses.

Rather than hiring sale managers, the company is individually contacting private equity firms that have an interest in the market, industry sources said on Tuesday (November 24). The construction company, which owns a 43.5% stake in Tiger CC, hopes to sell the golf course for approximately 120 billion won ($108.6 million).

“Tiger CC had been put up for sale in the past,” said an industry source, adding, “(The seller) has started contacting private equity firms that have an interest in acquiring golf courses again as the valuations of domestic golf courses soar.”

Market insiders are optimistic about Tiger CC’s financial performance. The golf course recorded an operating profit of 2.1 billion won for the first time in 2015, with its revenue increasing to 10 billion won in 2018 and 11 billion won last year and operating income rising from 2.5 billion won to 4.6 billion won. The company’s profitability is expected to improve sharply thanks to the Covid-19 pandemic, which has boosted playing numbers.

Valuations of golf clubs have continued to climb this year. In August Doosan Group’s Club Mow Country Club was sold for 185 billion won, or about 6.8 billion won per hole, and a new record was set in September when Keistone Partners signed a deal to sell its 18-hole golf course Anseong Q for 140 billion won, or 7.8 billion won per hole. (Reporting by Se-hun Jo)