Sunterra acquires
Kaanapali resort
for $94 millionThe time-share operator is buying
the rest of the interests in the resort
that it does not already own
Sunterra Corp. announced yesterday that it will become the sole owner of the Embassy Vacation Resort Kaanapali in Maui after purchasing partnership interests in the property for more than $94 million.
A time-share operator, Sunterra already owns 23.3 percent in the partnership, West Maui Resort Partners LP. The deal is scheduled to close by early July and Sunterra will retain a management contract at the 413-unit resort.
The company does not expect to make significant changes to the property's management team, said Sunterra President and Chief Executive Officer Nicholas Benson.
With this transaction, Sunterra will have the potential to acquire more than $235 million when it sells additional vacations at the 12-story resort. Additionally, the company will acquire $45 million of mortgage receivables that are among the strongest performing pools serviced by the company.
The transaction, which is expected to generate substantial revenues following the sell-out of acquired interests, is an example of the company's commitment to increasing value to is members worldwide and growing shareholder returns through prudent, planned growth, Benson said.
Acquiring the resort will make an immediate contribution to the company's bottom line.
Sunterra is one of the world's largest vacation ownership companies with 94 affiliated resort locations throughout the continental United States and Hawaii, Canada, Europe, the Caribbean and Mexico.