June 7, 2026 Community & Social Infrastructure

Understanding Commercial Mortgages for a Golf Course and Driving Range

Most golf course and driving range operators trade from land they lease, often under private freehold leases or long council ground leases. Owning the ground turns your premises into an anchor asset and a source of long-term value. At Ardent Capital Group we speak with operators about this kind of purchase, and this guide walks through how a lender sees it.

Ardent Capital Group is a specialist in commercial mortgages for golf course and driving range operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Finance from $100,000 to $10,000,000+, arranged and structured to suit how you hold and occupy the property.
Over $500,000,000 in funding facilitated across the last decade for Australian businesses.
Metro and regional coverage across Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, Hobart and surrounding areas.
Direct access to lenders that understand trading businesses with land, water and planning overlays.

Why buy rather than lease your golf course and driving range

Ownership secures the ground beneath a business that relies on location, access and planning approvals. For a golf course, the real cost sits in the land improvements and civil works that cannot move: greens construction, tees, bunkers, cart paths, fairway drainage, irrigation mainlines and pump stations, maintenance sheds, fuel storage, water rights and bore licences. Driving ranges carry their own fixed investment in netting, towers, floodlighting, bay structures, ball dispensers and pickers, range targets and safety buffers. Repayments convert occupancy cost into equity in an appreciating asset.

Demand ties closely to catchment and convenience. A course with established membership, coaching programmes and competition calendars binds players to that address. A range depends on road access, parking, noise limits, lighting permissions and nearby population growth. These are location advantages you typically cannot replicate if a lease is lost.

Revenue resilience often spans multiple streams: memberships, green fees, cart hire, coaching, range buckets, club fitting, pro shop retail and food and beverage. Owning the premises aligns those cash flows with a land and buildings asset that can carry value through cycles.

Key drivers we see:

Control over tenure, capex timing and clubhouse or range upgrades without landlord delays.
Ability to plan long-horizon investments like irrigation upgrades, LED lighting, regrassing greens or reconfiguring bays.
Convert rent into repayments that build ownership, with potential rental income if the property is later leased to another operator.
Greater flexibility in financing, including cross-collateralising with other assets where this improves terms.

Buying will not suit every operator at every moment. A short remaining lease on the land you occupy, a likely relocation due to rezoning, or near-term capital better deployed into turf equipment, drainage remediation or range technology can all favour staying leased for a period. The decision sits with you, and we are glad to talk it through either way.

The mechanics of a golf course and driving range mortgage

Deposit and LVR. A golf course or driving range is a specialised, income-producing asset, so lenders value it on a going-concern or specialised basis rather than as plain commercial floor space. Loan-to-value ratios typically sit around 50 to 65 per cent of value, with owner-occupiers who have a strong trading record sitting at the upper end. A well-presented file with clear water rights and secure tenure lifts where you land in that band, and additional security can support higher gearing.
Loan term and structure. Banks commonly write 10 to 15 year terms, and non-bank lenders stretch to 25 to 30 years. Structures include principal and interest for steady amortisation, or interest only for a period where cash flow needs priority, for example during course renovations or range expansion.
Security and serviceability. The property is the primary security. Lenders assess serviceability using business financials and a forward view. For courses and ranges this can include EBITDA trends, membership retention, tee sheet or bay utilisation, seasonality, coaching income, cart hire, retail and food and beverage margins, and capex plans. The valuation approach may be land and improvements or going-concern, depending on lender policy.
Owner-occupier treatment. Lenders generally view an owner-occupier favourably. Direct control over the asset, aligned incentives and a stable trading history can support pricing and structure.

Structuring the finance

Many golf course and driving range operators hold the freehold in a separate entity, such as a company or trust, that leases the premises to the trading business on commercial terms. A lender then reads the inter-entity rent as the serviceability line, benchmarks the operating company against it, and takes the land and buildings as security. This is a common arrangement, and the finance is assessed around it rather than us advising you to adopt it. It also sets a clear rent, simplifies benchmarking of the operating entity and can assist with future succession planning.

Where the freehold sits in a self-managed super fund, commercial premises usually meet the business real property test, so the fund can hold the land and buildings and lease them to your trading entity at a market rent, under a limited recourse borrowing arrangement with a bare (custodian) trust. The appeal is long-term asset accumulation within the fund; the trade-offs are contribution limits, liquidity management, related-party and documentation rules, and setup and ongoing costs. We structure the finance around the entities you already hold, and leave the tax and superannuation detail with your accountant and SMSF specialist to sign off.

How lenders size up the deal

Business financials and serviceability: three years where available, current year performance, interest cover, debt service cover and cash flow seasonality.
Property and valuation: land area, improvements, clubhouse and range structures, irrigation assets, lighting and netting, and the valuation method appropriate to the asset.
Planning and environment: zoning, ground lease terms if applicable, water access and licences, effluent or recycled water use, flood or bushfire overlays, noise and lighting approvals for ranges.
Deposit and equity position: cash, equity in other property, or additional security available.
Occupancy and lease profile: remaining term if you currently lease, intentions upon settlement, and any pre-committed rental if held in a separate entity.
Experience and management: operational track record, agronomy planning, capex pipeline and maintenance programmes.

A broker with sector knowledge helps present the right valuation basis, deal with ground lease or water rights questions early, and place your application with lenders that understand golf assets.

A scenario worth considering

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Situation: a suburban driving range with 40 covered bays, a coaching academy and a pro shop. The operator leases a 5.5-hectare site with 18 years remaining on a council ground lease and has the option to buy a neighbouring freehold parcel that includes the range frontage and buildings for $4,200,000.
Profile: EBITDA averages $620,000 with seasonal swings, cash reserves of $800,000, and a residential property with $600,000 of available equity. Planned capex includes LED floodlighting and two new ball dispensers at $320,000.
Options weighed: buy the freehold in a property trust with a leaseback to the operating company, or negotiate an extended ground lease and defer the purchase. Vendor terms on part of the price could reduce the cash outlay.
Structure considered: a commercial mortgage at around 60 to 65 per cent of a going-concern or specialised valuation, interest only for two years then principal and interest over 20 years. Asset finance for the lighting and dispensers to keep cash free for the deposit. SMSF flagged as a longer-term option given the fund's liquidity.
How to leverage your equity: draw $500,000 against the residential security to supplement a $400,000 cash deposit, reducing commercial mortgage gearing while preserving working capital.
How we would approach it: we would map the ranges, structures and repayments, model up to around 65 per cent LVR on the freehold subject to valuation, serviceability and council documentation, and set out the likely covenants around interest cover and quarterly reporting. The figures above are illustrative, not confirmed outcomes; the client would weigh tax, control and timing with their accountant and choose the path that suits their objectives.

Related finance for a golf course and driving range

Asset finance for turf and range equipment. Fund greens and fairway mowers, utility vehicles, greens rollers, cart fleets, irrigation pumps, range ball pickers, dispensers and launch monitor systems through golf course equipment finance.
Fit-out and refurbishment finance. Upgrade clubhouse kitchens and locker rooms, refit the pro shop, replace mats and targets, install or extend netting and LED lighting, or add a putting studio.
Working capital loans. Smooth cash flow through wet seasons, cover agronomy inputs, prepay fertiliser and chemicals, and bridge event lead times with working capital for a golf course.
Business overdraft. Flexible buffer for payroll, stock purchasing and short-term timing gaps across retail and food and beverage.
Refinancing and debt consolidation. Restructure legacy facilities, improve pricing or move to covenants that match the business cycle.
Construction and renovation. Regrassing greens, reshaping bunkers, drainage works, new tees or short-course additions, range canopy extensions and mini-golf builds.
Business or premises acquisition finance. Buy a freehold from a private owner, acquire a going-concern course or range, or fund a partner buy-in or buy-out.

Owning the premises can support future capex and, combined with a refinance, can consolidate multiple facilities into a clear structure.

Specialist finance for golf course and driving range premises

Ardent Capital Group arranges and structures commercial mortgages for golf course and driving range operators. We build the finance around how you intend to hold and occupy the property, then place it with lenders that understand the asset.

We are a specialist commercial mortgage broker servicing Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. We have helped facilitate over $500,000,000 in funding over a decade for more than 1,000 borrowers. If you want a clear view of structure, pricing and lender fit, talk to us. Our goal is optimal financial outcomes with practical execution.

Our brokers work the full lender panel for a golf course property loan, not a single bank.

Frequently asked questions

What deposit do I need to buy a golf course or driving range?

A golf course or driving range is valued on a going-concern or specialised basis, so plan for a larger deposit than a standard commercial building. LVRs typically sit around 50 to 65 per cent, so a 35 to 50 per cent deposit is a realistic starting point, with owner-occupiers who have a strong trading record at the upper end. Additional security can support higher gearing where serviceability is strong.

Will lenders value my business as a going-concern or just the land and improvements?

Policies differ. Some lenders take a going-concern approach for trading courses and ranges, others focus on land and buildings with limited goodwill. Choice of lender and valuer matters.

Can my SMSF buy the freehold and lease it to my golf business?

Commercial premises usually meet the business real property test. An SMSF can own the land and buildings and lease them to your trading entity at a market rent. Consider liquidity, contribution limits and documentation, and have your accountant confirm the detail before proceeding.

How are council ground leases viewed by lenders?

Long, assignable ground leases with clear renewal options, rent review mechanics and permitted use clauses are essential. Short remaining terms or ambiguous renewal rights can restrict LVR and pricing.

What loan terms are common for course and range mortgages?

Banks commonly write 10 to 15 year terms, and non-bank lenders stretch to 25 to 30 years. Many lenders allow an initial interest-only period where cash flow is directed to renovations or equipment replacement.

Can I fund irrigation upgrades, netting or lighting within the mortgage?

Major permanent upgrades can be included if they form part of the property improvements. Equipment like pumps, dispensers and lighting columns is often better placed in dedicated asset finance to preserve mortgage capacity.

Does weather seasonality affect serviceability?

Lenders expect seasonality in golf. Demonstrate multi-year performance, show how winter or wet periods are managed, and evidence stable revenue from memberships, coaching and range usage to support serviceability.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.