Two top golf clubs in merger deal

Grange club members will meet tomorrow to be briefed on the options and hear from their board. Photo / Paul Estcourt

Proposal to join neighbouring clubs the Grange and Royal Auckland to allow for expansion and upgrade.

The Grange Golf Club wants to merge with its neighbour the Royal Auckland Golf Club where Prime Minister John Key plays, in a $100 million deal which has unsettled some members but resulted in many others backing it.

Under a proposal now before both clubs, the South Auckland courses would be merged into one super 27-hole course with full driving range and short game facility, but with part of the Grange sold.

But last year, Royal Auckland members ditched a merger proposal, with 57 per cent voting against it. A Grange member said his club was driving the talks because the Grange had land but was poor, while Royal Auckland had cash but needed extra land for future expansion.

John De Geus, a Royal Auckland member for more than two decades who last year spoke out against a merger, said last week he was happier with the new deal.

"They worked through many of the difficulties," he said. Committees of both clubs had released more extensive information and he could see the value of the deal under discussion.

But an ex-Grange member complained the terms of the deal were unfair because Royal Auckland stood to get the Grange's $40 million course for paying off only a meagre $2.2 million Grange bank debt.

Said another golfer: "The Royal wants the Grange course but not actually its members, because they're far too snooty."

Royal Auckland members were largely European while the Grange had many Asian players, he said.

Complained another disgruntled party: "The Grange gets only three out of 12 members on to the committee of the new club so it's more akin to a takeover."

Nothing is decided yet. Grange members will meet tomorrow to be briefed on the options and hear from their board, chaired by Rob Chemaly, who said Royal Auckland had already engaged international course consultants Nicklaus Design Group to plan the new super-course.

Craig Sheffield of Royal Auckland said his club's ranking was slipping as new courses opened: the Peninsula club was moving to Wainui Rd west of Orewa, a new elite golf resort would open soon at Te Arai, 110km north of Auckland, and the Manukau club was moving to a new course at Alfriston. Auckland's course also needed renovating and modernising.

All these developments, combined with rapidly ageing membership and the need to improve the course, prompted Royal Auckland committee members to look favourably on the Grange deal.

Mr Chemaly said a decision would be made next month at a special general meeting.