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Pebble Beach for sale?
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May 27, 1999: 4:39 p.m. ET
Palmer, Eastwood seek to buy legendary oceanside course; could fetch $1B
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NEW YORK (CNNfn) - A group of investors -- led by golf legend Arnold Palmer, film star Clint Eastwood and former Major League Baseball Commissioner Peter Ueberroth -- is close to buying the legendary Pebble Beach golf course for as much as $1 billion, reports said Thursday.
Palmer confirmed that his group was "in serious negotiations" to buy the storied, Japanese-owned course near Monterey, Calif., Golfweek magazine said.
Golfweek cited a source closed to Pebble Beach that said the deal is all but done for a sale price of about $1 billion.
If the sale goes through, it would mark the second time this decade that Pebble Beach has been sold.
The group also includes Richard Ferris, former chief executive officer of United Airlines, a subsidiary of UAL Corp. (UAL), according to the Los Angeles Times.
Pebble Beach is home to some of the most spectacular golf scenery in the country and site of the annual AT&T Pebble Beach Pro Am, a top PGA Tour event.
source: 111th Aerial Photography Squadron
Craggy cliffs, cobalt sea
The Wall Street Journal reported that KSL Recreation Corp., a California unit of Kohlberg Kravis Roberts & Co., also has considered the property. A spokesman said the company declined to comment on rumors or speculation.
Lone Cypress Co., which in turn is owned by Taiheiyo Club Inc. and Sumitomo Corp., bought the property from Japanese developer Minoru Isutani for an estimated $500 million in 1992.
Isutani paid about $841 million for Pebble Beach when he bought it in 1990, but the course lost money and soon became a symbol of a string of failed Japanese investments in overpriced trophy U.S. real estate.
In addition to Pebble Beach Golf Links, Pebble Beach Co. holdings include three other local golf courses as well as two hotels with a third under construction.
-- from staff and wire reports
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