NEWS
WestAmerica Completes Land Purchase, Signs Financing Agreement for Timeshare
Development
PR Newswire, Monday, August 10, 1998 at 08:53
- Exercises Option for Additional 250 Acres -
ORLANDO, Fla., Aug. 10 /PRNewswire/ -- WestAmerica Corporation
(BB: WACC) announced today it has completed the purchase of
the first 35 acre tract of land and exercised the option to purchase the
remaining 250 acres of its 285 acre development located in Polk County,
Florida, with Dr. James P. Gills of Tarpon Springs, Florida. The option,
which calls for a purchase price of $5,000,000 or $20,000 per acre, runs for
12 months and may be extended for up to 4 and 1/2 months, until December 20,
1999. The land, situated on Highway 27 between Interstate 4 and State Road
192, is within a 10 minute drive of Walt Disney World.
In conjunction with the land closing, WestAmerica Corporation entered into
a Financing Agreement with American Leisure, Inc. of Orlando, a privately held
conglomerate of leisure related companies, and granted a first mortgage for
$1,000,000 to American Leisure to be repaid in 12 months. Under the Financing
Agreement, American Leisure initially receives interest on its loan and a
50% interest in the project, and WestAmerica is collateralizing its
obligations with its 50% interest in the project. If WestAmerica is unable to
repay the loan in one year and does not complete the acquisition of American
Leisure, then American Leisure could end up owning some or all of the project.
Additionally, WestAmerica has the option to acquire 100% of American
Leisure, its subsidiary companies, and American Leisure's interest in the
project upon issuing restricted common shares of WestAmerica and repayment of
the loan. In such event, the entire project would be owned by WestAmerica.
The amount of WestAmerica restricted shares to be issued to acquire American
Leisure will be determined at the completion of the acquisition and is subject
to other terms and conditions.
Under the Financing Agreement, the parties have agreed to obtain a
development loan of up to $1,600,000 for the on-site development costs.
American Leisure has agreed to subordinate its first mortgage to a second
mortgage status behind a new development loan. The site development will
include horizontal infrastructure such as roads, utilities, water retention
lakes and entrance features.
Max P. Cawal, president and chief operating officer of WestAmerica said,
"By closing on the land for the first phase of the development last Friday,
locking in our purchase terms for the balance, and getting American Leisure to
agree to subordinate their position to a development loan, WestAmerica can
implement the development program and move forward the operations at our
project."
WestAmerica's complete master planned development was approved in June,
1998 for 750 units (39,000 timeshare weeks) to be built and sold as timeshare
on the property with the first phase, consisting of 162 units (8,424 timeshare
weeks) built on 35 acres. Based on RCI Consulting's feasibility and marketing
study, the expected project sellout is in excess of $460,000,000.
WestAmerica's timeshare resort will include single-family homes and
villas, some featuring 3 bedrooms, 3 baths, with heated pools and spas, with
an 18-hole championship golf course and complete resort amenities -- the first
project of its kind developed by a public company.
WestAmerica Corporation, a leisure industry company, is in the principal
business of developing vacation ownership (timeshare) destination resorts.
From time to time, the company may issue forward-looking statements that
involve risks and uncertainties. This statement may contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Actual results could differ and any forward-looking statements should be
considered accordingly.
SOURCE WestAmerica Corporation
-0- 08/10/98
/CONTACT: Daniel M. Boyar of WestAmerica Corp., 407-354-3333; or
Bob Stone of The Dilenschnieder Group, 212-922-0900, for WestAmerica/
Companies or Securities discussed in this article:
Symbol
Name
BB:WACC
Westamerica Corp |
