American Leisure Holdings, Inc. Closes $54,850,000 in Senior Debt and $25,825,000 in Bonds for the Sonesta Orlando Resort at Tie
January 12 2006 - 8:50AM
Business Wire
American Leisure Holdings, Inc. (OTCBB: AMLH), announced today that
it has closed on $54,850,000 in senior debt to be used in the
development of The Sonesta Orlando Resort at Tierra del Sol (the
"Project"). KeyBank, N.A. is the lender of two credit facilities
for the benefit of AMLH. The first is a land loan in the amount of
$14,850,000, which is secured by Project land that is dedicated to
specific phases of the development. The second is a $40,000,000
revolving construction loan that will fund the development and
construction for Phase 1 of the Resort. Phase 1 consists of 114
town homes and 180 mid-rise condominiums in a luxury vacation home
resort community. Both loans are part of a comprehensive finance
plan for the development of the Project that also includes funding
in the amount of $25,825,000 from the Westridge Community
Development District ("CDD"), which bonds will be used to pay for
infrastructure facilities for public purposes such as water supply
and retention systems, roadways, green space and nature recreation
areas. The Sonesta Orlando Resort is designed to be constructed in
multiple phases, some of which will be built concurrently. Phase 1
is scheduled to include 294 vacation units and the first phase of
one of Central Florida's largest swimming and recreation complexes.
A combination pool and lazy river swimming feature, an outdoor
sports bar and food service complex, restroom facilities, showers,
water-slides, beach volleyball and extensive sundecks are all part
of the Phase 1 planned amenities. (www.tierradelsolresort.com)
Phase 2 is planned to start in 2006 during the construction of
Phase I with full Project completion for all 972 resort units
scheduled during 2007. Phase 2 is scheduled to include 678 vacation
units and additional resort amenities. The planned amenities for
Phase 2 include a 126,000 square foot clubhouse (84,000 square feet
under air), miniature golf, a "flow rider" water attraction, a wave
pool, a rapid river, and a children's multilevel interactive water
park. The Clubhouse improvements in Phase 2 are expected to include
a reception center, banquet and meeting rooms, casual and fine
dining restaurants, a full service spa, shops, a sales center and
an owners' club. The vacation units in Phase I are over 90%
pre-sold. Total sales to date at the Resort now exceed $234
million. In addition to the KeyBank provided senior debt, the
Project is also benefiting from $25,825,000 in bonds issued by the
Westridge Community Development District, a special purpose taxing
district formed for the purpose of financing the installation of
vital public services such as water supply and retention, sanitary
and storm water sewer systems, roadways and the landscaping
attendant to those uses. The CDD supports these initiatives,
through the provision of capital and maintenance, via a tax upon
the property owners of the district that utilizes a low finance
rate (5.8% per annum) and a long-term amortization of the capital
costs (30 years). Consequently, the developers of the land in the
CDD and the initial property owners are spared the cost of such
capital improvements. The first phase of site work, at an estimated
cost exceeding $19 million, will be funded by the CDD via the sale
by the CDD of bonds issued on a non-recourse basis to the Company
("CDD Bonds"). The CDD was initially created by the Company in
September 2003 and enabled by an order of a Florida State District
Court. The CDD Bond issue was underwritten by KeyBanc Capital
Markets Group in the amount of $25,825,000. The first issue of the
CDD Bonds were successfully sold and closed simultaneous with the
closing of the Key Bank senior debt facilities. The Sonesta Orlando
Resort occupies 122 acres that front US Route 27 approximately four
miles south of US Highway 192 and three miles north of the
intersection of Interstate 4 and US Route 27, between Osceola and
Polk Counties in Central Florida. The Project is in the epicenter
of vacation home resorts that serve the Orlando theme park
attractions. The Company also concluded the sale of land it had
been holding for future development, realizing $7,600,000 from the
sale. The Company has reinvested these funds into the project as
part of its total equity commitment in the Project of over $60
million. Stanford Venture Capital Holdings, Inc., the Company's
long time equity capital partner, provided convertible credit
facilities that comprised $8,100,000 of the Company's equity
commitment. The Orlando offices of Foley & Lardner, led by
senior partner Terence Delahunty, represented Key Bank. The Miami
offices of Shutts and Bowen, specifically Richard Morgan, Alfred
Smith and Margaret Rolando, represented the Company. First American
Title Insurance Company, led by James Dyer, provided the title
insurance for the Project. Construction of the Project will be
undertaken by the Orlando subsidiary of PCL Construction
Enterprises, Inc., of Denver, Colorado. PCL Construction Services,
Inc., led by Deron Brown, District Manager, has invested valuable
time and energy and has made significant financial commitments
toward the successful completion of the Project by way of a
guaranteed maximum price contract for Phase 1 supported by way of a
$4,000,000 construction deposit with KeyBank. Development of the
Project is being undertaken by American Leisure Real Estate Group,
Inc., led by Steven Parker, its President, as it continues the task
it started in 2003 for the Company when it began the design and
entitlement process. Malcolm Wright, AMLH President and CEO, said,
"The Company, in closing these construction facilities, has reached
a major milestone in the fulfillment of its mission to build the
best vacation home ownership resort in the Orlando area designed
for the Orlando family vacation. Our goal was to create a unique
development that combines quality construction with spectacular
resort amenities that reflect and add to the entertainment focus of
the area, I believe we will do just that. Our entire emphasis is to
provide both our vacation home owners and our future resort guests
the opportunity to enjoy a world class resort operated by expert
management with special advantages made available by our resort
operator, Sonesta International Hotels Corporation. The Company
will continue to concentrate on growing its vacation resort
development projects for management and distribution through its
travel companies, Hickory Travel Systems, Inc. of Saddle Brook, NJ,
an international travel consortium and travel services provider,
and, TraveLeaders of Coral Gables, Florida, a travel agency
business". The Sonesta Orlando Resort at Tierra del Sol is
Sonesta's first Orlando resort property. "We are pleased to see
this project moving forward, for we know it will add another
dimension to resorts in the Orlando area. The oversized guest
accommodations combined with the extraordinary world-class
amenities will certainly attract guests to the Resort. We are very
excited about our participation", states Sonesta President
Stephanie Sonnabend. Sonesta's other Florida properties are in the
South Florida area, specifically Key Biscayne, Coconut Grove and
Sunny Isles Beach. "We're happy to be the leader in the
underwriting of the conventional construction loans and the bond
financing", said Robert Carmichael, Senior Vice President and Team
Sales Leader of KeyBank Real Estate Capital's Orlando Office.
"American Leisure has created a unique model in the Orlando market,
combining its development expertise, its marketing and its
extensive travel agency network to drive the sale of units and the
delivery of visitors to the Resort. We look forward to a successful
venture." About American Leisure Holdings, Inc. American Leisure
Holdings Inc. (OTCBB: AMLH) is an integrated travel services
distribution and travel destination development company. The Travel
Division is comprised of TraveLeaders, and Hickory Travel Systems,
Inc., a travel distribution network whose members produce
multi-billion dollar gross annual sales. The Company's plan is to
expand its affiliated travel network within AMLH's business model
for an integrated distribution channel. The Company is actively
working to develop innovative travel and communication technology
and systems to enhance its competitive position in the travel
management and vacation home development arenas. The Company
intends to take advantage of the natural synergy between travel
distribution and the management and development of travel
destinations. This synergy will enhance the performance of the AMLH
Vacation Home Resort Development Division that develops high
quality vacation home resort properties. About KeyBank Real Estate
Capital KeyBank Real Estate Capital is the nation's third-largest
commercial real estate capital provider with nearly $19 billion in
annual financings. It provides construction and interim loans,
mezzanine financing, private equity, commercial mortgages,
investment banking and loan sales and syndications services
nationwide for virtually all property types. Its 800 financing
professionals serve a national client base through 36 locations in
major U.S. markets. KeyBank Real Estate Capital is a business unit
of KeyBank National Association, a subsidiary of Cleveland-based
KeyCorp, one of the nation's largest bank-based financial services
companies, with assets of approximately $91 billion. About Sonesta
International Hotels Corporation Sonesta Hotels, Resorts & Nile
Cruises, based in Boston, represents a collection of 25 upscale
hotels and resorts and 3 Nile Cruise ships. Founded in the 1940's,
Sonesta has a long-standing reputation in the hotel industry for
offering properties that are designed to deliver uncompromising
personal service, reflect the culture and history of their location
and provide a memorable experience unique to each hotel. Sonesta's
properties are located in Boston, New Orleans (2), Miami (3),
Orlando (opening 2007), St. Maarten, Brazil, Peru (7), St. Lucia
(opening in mid 2006), and Egypt (9). For more information about
Sonesta Hotels, Resorts & Nile Cruises, call 1-800-SONESTA
(800-766-3782), or visit Sonesta's website at
http://www.sonesta.com. Forward Looking Statement: This press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
statements regarding AMLH in this release that are not historical
in nature, particularly those that utilize terminology such as
"may," "will," "should," "likely," "expects," "anticipates,"
"estimates," "believes" or "plans," or comparable terminology, are
forward-looking statements based on current expectations about
future events, which AMLH has derived from the information
currently available to it. These forward-looking statements involve
known and unknown risks and uncertainties that may cause AMLH's
results to be materially different from results implied in such
forward-looking statements. Important factors known to AMLH that
could cause forward-looking statements to turn out to be incorrect
are identified and discussed from time to time in AMLH's filings
with the Securities and Exchange Commission. The forward-looking
statements contained in this release speak only as of the date
hereof, and AMLH undertakes no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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