Professional golfer Rory McIlroy and partners
will own at least 10% of all venues under development today, as
well as optional investment in future venues, via Symphony
Ventures.
Drive Shack Inc. (the “Company”) (NYSE: DS), a leading owner and
operator of golf-related leisure and entertainment businesses,
announced today it has signed a definitive agreement with global
golf superstar Rory McIlroy and his team. Their investment
partnership, Symphony Ventures, will make a strategic investment in
Puttery, Drive Shack Inc.’s newest competitive socializing and
entertainment golf experience.
“Puttery is an immersive, unique and one-of-a-kind entertainment
golf experience – it is an exciting and logical partnership for me
and my investment group,” McIlroy said. “I have been collaborating
with the Drive Shack team for more than two years on Puttery and
have remained engaged throughout its entire evolution. I look
forward to the opening of our first Puttery venues this summer in
both Dallas and Charlotte and am committed to investing in the
growth and development of future Puttery venues, contributing to
their success in the coming years.”
Symphony Ventures has committed an investment of at least $10
million over Puttery’s three-year development schedule, in exchange
for 10% ownership in the equity of each Puttery venue that is
planned to open through 2023 at a price equal to 10% of the total
cost to build each venue. Investments will begin with the first
Puttery location near Dallas (The Colony, Texas), and continue
consecutively on a venue-by-venue basis until the commitment is
satisfied. Thereafter, Symphony Ventures will have the right, but
not the obligation, to invest on the same terms through all Puttery
venues that open by the end of 2023.
“Everyone knows Rory is a highly respected, world-renowned
golfer. His deep knowledge and perspective of the game will be
instrumental for many years to come as we further expand our
Puttery brand,” said Drive Shack Inc. Chairman Wes Edens.
Drive Shack Inc. plans to open or nearly complete a total of
seven new Puttery venues by the end of 2021, with four of the
locations previously announced in Dallas; Charlotte, N.C.;
Washington, D.C.; and Miami.
“Rory and his team have been incredible partners throughout our
entire Puttery evolution,” said Drive Shack Inc. President and
Chief Executive Officer Hana Khouri. “Their involvement and
viewpoints have helped shape this innovative concept from the
start. We look forward to building a long-standing relationship
with Rory and his team, bringing our Puttery vision to life in the
coming weeks.”
A pro-rata cash distribution of venue net cash flows equal to
the ownership percentage will be made to the investment group on a
quarterly basis. In lieu of a cash distribution, the investment
group may elect to deposit cash returns into a capital account
designated to fund investments in future venues through 2023.
Beginning in 2024, the investment group may elect for all or a
portion of the venue LLC interests to be converted into common
equity of the Company. Please see the Company’s Form 8-K filed
today for the full terms of the definitive agreement.
The foregoing description of the investment transactions is
qualified in its entirety by the description included on the Form
8-K filed by Drive Shack Inc. concurrently with this press
release.
About Rory McIlroy
Rory McIlroy is a professional golfer from Northern Ireland. A
member of the European and PGA Tour, Rory has won 28 tournaments
worldwide, including four major championships and two FedEx Cups.
So far, he has spent 106 weeks as number one in the Official World
Golf Ranking. Rory has partnerships with NBC, Nike, Omega, Optum
and TaylorMade. In addition, Rory is the lead partner of Symphony
Ventures, which has an investment portfolio of technology companies
across health, wellness, and golf.
About Drive Shack Inc.
Drive Shack Inc. is a leading owner and operator of golf-related
leisure and entertainment businesses focused on bringing people
together through competitive socializing. Today, our portfolio
consists of American Golf, Drive Shack and Puttery.
About Puttery
Puttery is a modern spin on putting, re-defining the game with
unique twists at every hole. Bold and full of possibilities, guests
can enjoy a high-energy atmosphere, combining competitive
socializing and innovative auto-scoring technology within an
immersive experience as they move from one course to the next. With
plentiful curated culinary offerings and inventive craft cocktails,
all centered around a lively bar area with great music, guests can
nosh the night away before, during and after their tee time. The
first two venues will open in Dallas and Charlotte, N.C., with
additional locations coming to Washington, D.C., and Miami later
this year. To learn more or plan your visit, please visit
puttery.com.
Cautionary Statement Regarding Forward-Looking
Statements: Certain statements regarding Drive Shack Inc.
(together with its subsidiaries, “Drive Shack,” “we” or “us”) in
this release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
You can identify these forward-looking statements by the use of
forward-looking words such as “outlook,” “believes,” “expects,”
“by,” “approaches,” “nearly,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates,” “target,” “goal,”
“projects,” “contemplates” or the negative version of those words
or other comparable words. Any forward-looking statements contained
in this press release, including statements regarding the expected
development schedule and timing of specific milestones for Puttery
venues, are based upon our limited historical performance and on
our current plans, estimates and expectations in light of
information (including industry data) currently available to us.
The inclusion of this forward-looking information should not be
regarded as a representation by the Company or any other person
that the future plans, estimates or expectations contemplated by us
will be achieved. These statements are subject to a number of
factors that could cause actual results to differ materially from
those described in the forward-looking statements, many of which
are beyond our control. We can give no assurance that its
expectations regarding any forward-looking statements will be
attained. Accordingly, you should not place undue reliance on any
forward-looking statements made in this release. For a discussion
of some of the risks and important factors that could affect such
forward-looking statements, see the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q. In
addition, new risks and uncertainties emerge from time to time, and
it is not possible for the Company to predict or assess the impact
of every factor that may cause its actual results to differ from
those contained in any forward-looking statements. Such
forward-looking statements speak only as of the date of this
release. We expressly disclaim any obligation to release publicly
any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20210712005236/en/
Investor Relations and Media: Kelley Buchhorn Head of
Investor Relations Drive Shack Inc. 646-585-5591 ir@driveshack.com
pr@driveshack.com
Rory McIlroy Public Relations: Aileen Gaskin The
Communications Clinic, Head of PR +353 8777 24717
aileen@communicationsclinic.ie
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