Drive Shack is “on track’’ to open seven of its interactive mini-golf “Puttery’’ locations by the end of this year, according to company president Hana Khouri. Drive Shack currently has two Puttery venues open – Charlotte, N.C., and in The Colony, Texas, near Dallas.
The next Puttery opening is expected to be next month in Washington DC’s Penn Quarter next month, followed by Houston and Chicago locations, which are slated to open in Q3.
“We are aggressively pursuing new leases for venue openings in 2023 and are currently in active discussion with landlords on multiple sites across the country,’’ Khouri told Wall Street analysts on May 10.
Drive Shack, however, apparently won’t be able to open all seven of the new Puttery venues this year without more money.
Kelley Buchhorn, the company’s interim chief financial officer, told analysts Drive Shack has “available liquidity’’ to complete five of the seven venue openings in 2022.
“We continue to work through a large pipeline have additional venues for 2023 openings, most of which we expect to sign this year to get to our goal of 16 new Puttery openings next year,’’ Buchhorn said. “With that we will require approximately $75 million of new capital to fund the remaining two venues planned to open later in 2022, and get the development for the 16 new venues off the ground this year, so that we remain on track with our 2023 opening timeline.’’
While this additional capital is not planned to fully fund all 16 venues of the 2023 opening plan, Buchhorn said, “we do expect it will be sufficient to meet our needs through early 2023.’’
Drive Shack, according to Buchhorn, has engaged an independent financial advisory firm with “significant experience’’ in the entertainment industry to lead $75 million financing initiative.
“We have spent the last few weeks working with their team on discovery and due diligence and are nearing the marketing and lender outreach phase of the project. While we are still several weeks away from finalizing a deal, we are working towards funding over the next three months.’’