Centex
Golf Course Construction
Business Venture
• Centex Golf Course Construction will be
spanning the country designing and
constructing golf courses for our parent
company to expand into luxurious golf
communities. This new division will
include all aspects of golf course
development, and will help Centex grow
into new markets.
Mission
• Centex Golf Course Construction is a
construction company that specializes in
building golfer-friendly courses in residential
communities. We are dedicated to serving
golfers within these communities by providing
high quality golf facilities to players of all ages
and abilities and enhancing their enjoyment of
the game.
Company Overview
• Centex Golf Course Construction provides full services
for the coordination and execution of all phases of golf
course construction. Areas of expertise include pond
construction, all quantities of cut and fill, U.S.G.A. green
construction, shaping of features, laser drainage and
irrigation, and finishing of site for seeding. To ensure
scheduled progress during construction, we provide
every project with highly qualified and experienced site
supervision. Our professional personnel possess solid
backgrounds in golf course construction, maintenance,
installation and design of drainage, and irrigation
installation which makes it possible for us to provide a
most complete service.
Area of Operation
• Headquarters will be located in Orlando,
FL
• New Golf Course Construction will be a
national endeavor, focusing on coastal
areas
Project Funding
• Funding for Centex Golf Construction will
be provided by Centex Corp.
• Course costs will vary greatly depending
on location
• Typical Centex Golf Course Construction
will range from $35,000-$100,000 per hole
Course Cost Breakdown
Centex Golf Course Construction
Why Golf Courses?
• Many developers of golf communities have built
courses to satisfy municipal or state
requirements for open space in their housing
developments.
• Courses will significantly increase the price of
the surrounding real estate market, bringing a
larger profit margin to Centex Corp.
• Growing demand for land and homes located on
golf courses
Example Project
• Average course construction will fall between 2.5 million
and 3.5 million dollars
• For an average area in Florida, Building 2 identical
houses with one built on a golf course and one that is not
on a course the price difference will range between 2050 thousand dollars.
• We will be planning around 250 houses located on each
course, which will bring in an extra 5-12.5 million dollars.
• After realizing the actual cost to build the course, Centex
will then see an additional 2.5-10 million dollars on each
development
Steps for Market Analysis &
Customer Demographics
• 1. Site Inspection: Evaluate the suitability of the subject
site from a market perspective, evaluating factors such
as accessibility, visibility from major roads, and the
physical characteristics of the site.
• 2. Local Area Overview: Examine the local area,
focusing on factors that could impact demand for the
subject project, such as climate, geography, existing
amenities (such as shopping, dining, medical, schools,
recreation options, etc.), visitation, visitor profiles,
seasonality, resident demographics, existing residential
market conditions, etc.
Steps for Market Analysis &
Customer Demographics
• 3. Examination of Existing Relevant Resorts/Residential
Communities/Golf Courses/Hotels: Depending on the land uses in
question, identify relevant projects and completes detailed
overviews of the relevant properties, focusing on operating
performance, sales performance, buyer profiles, visitation patterns,
seasonality, architectural styles, recreation amenities, etc.
Information for this task is typically gathered through site inspections
and detailed, face-to-face interviews with resort managers, directors
of golf, directors of sales, and other key staff. Although this research
is time-consuming, we view it as an absolutely critical component of
any market analysis.
• 4. Investigation of Relevant Proposed Projects: In order to
ascertain the likely future competitive landscape for our project, we
will do a complete comprehensive investigation of relevant proposed
projects.
Steps for Market Analysis &
Customer Demographics
• 5. Analysis of Demand: In order to gauge the depth and profile of
market support for golf courses in residential communities or other
project types, Centex Golf Course Construction will need complete
detailed overviews of relevant source markets, examining
demographic factors and local economic conditions, and then
typically performs quantitative analyses of potential demand by
market segment, providing benchmarks from which to evaluate the
likely future supply-and-demand relationship.
• 6. Formulation of Development Recommendations and
Financial Analysis: After conducting in-depth research, Centex
Golf Course Construction will use the information to work with the
golf course architect to formulate comprehensive development and
market positioning recommendations for the project, based on a
detailed, pro forma financial analysis. For each project, we construct
a customized financial model, and then test various market
positionings, phasing options, and development options to
determine which development program and market positioning
appears most capable of meeting our objectives.
Services Provided By Centex
Golf Course Construction
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Complete design team
Site Assessment
Feasibility Studies
Conceptual and Master Planning
Detailed Design and Documentation
Construction Programming
Cost Analysis
Construction Progress Inspections
Post Construction Consultation
Clubhouse / Pro Shop / Maintenance Centre design and
documentation
• Remodeling and reconstruction
Competitors
• Agri-Scape Golf Course Construction, Inc.
• Ames Construction, Inc.
• Aspen Golf Course Construction & Renovation,
LLC
• Benson Construction Company, Inc.
• Cook & Solis Construction Inc.
• The Golf Group, Inc
• Wadsworth Golf Construction Company
Parent Company Financials
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Key Numbers
Company Type Public (NYSE: CTX)
Fiscal Year-End March2006
Sales (mil.) $14,341.01
Year Sales Growth 11.5%
2006 Net Income (mil.) $1,289.31
Year Net Income Growth27.5%2005
Employees17,134
Management Structure
Field
Manager
Project
Manager
Field
Manager
Architect/
Designer
Field
Manager
Purchasin
g and
estimating
Division
President
Future Ventures
• Expand Centex’s Opportunities in the
booming Ice Golf industry