Eight years ago, Du Sha cashed out his chain of home-improvement centers — the first superstores of their kind in China — with a sale to Home Depot for $100 million.
Today, with a net worth of more than $600 million, the former economics professor has taken up the conventional pastime for those with money and time: golf.
Du has bigger plans than reducing his handicap. Teaming with a Canadian golf executive, he has bankrolled Pacific Links International, which now owns 10 high-end U.S. courses, including the $20-million Dove Canyon Golf Club, in a private community abutting the Cleveland National Forest in south Orange County.
Du and other wealthy Chinese investors are quickly adding golf courses to their growing portfolios of U.S. holdings. In the last year, Chinese investors have bought prime properties including the 2,000-acre Sea Trail Golf Resort, built around three Sunset Beach, N.C., courses, along with smaller ones, such as Rancho Duarte Golf Club, a nine-hole, par-31 course built on a former dump in the San Gabriel Valley.
The investments also mark the third wave of golf course purchases by Asian investors. Unlike the Japanese and the South Koreans before them, the Chinese are buying at the bottom of the market. But they are entering an overbuilt industry that has suffered from declining American interest in golf since well before the Great Recession drove many courses into bankruptcy.
The purchases of U.S. golf courses follow a long series of investments by wealthy Chinese in other areas — such as Gov. Jerry Brown’s pet housing project in Oakland and the AMC Theatres chain. Chinese investors also have purchased Sheraton hotels in Universal City and at Los Angeles International Airport and helped ignite such red-hot California housing markets as Arcadia and Irvine.
Major Chinese investments in U.S. businesses doubled to $14 billion last year — and added $8 billion more in the first three months this year, according to Rhodium Group, a New York economic consulting firm.
Read more at The LA Times.