Orlando Resort at Tierra Del Sol; Upon Completion Resort to Include 972
Vacation Units and Large-scale Water Park
|ORLANDO, Fla. - Aug. 18, 2005 -- American Leisure Holdings, Inc. (OTCBB:AMLH),
announced today that it has obtained commitments for two credit facilities
to be used in the development of The Sonesta Orlando Resort at Tierra del
Sol (the "Project"). KeyBank, N.A. issued the commitment wherein it is
the lead lender in a $96,600,000 development and construction facility
for Phase I of the Resort which consists of a luxury vacation home community
comprised of 250 town homes and 180 mid-rise condominiums. In addition,
KeyBank, N.A. has committed to fund a second loan in the amount of $14,850,000
as a land loan on Phase II of the Resort. KeyBank plans to hold approximately
$50 million of the combined commitments with the balance syndicated to
other banking organizations. Both loans are expected to close within 60
to 90 days. Both loans are part of a comprehensive finance plan for the
development of the project that also includes a Community Development District
("CDD"), which will be used to pay for the Project's sitework.
The Sonesta Orlando Resort is designed to be constructed in two phases. Phase I is scheduled to include 430 vacation units, a 126,000 square foot Clubhouse (84,000 approximate square footage under air), and one of Central Florida's largest swimming and recreation complexes which includes a combination pool and lazy river swimming feature, an outdoor sports bar and food service, restroom facilities, showers, water-slides, beach volleyball and extensive sundecks. Phase II is expected to start during the construction phase of Phase I during 2006 with full Project completion for all 972 units scheduled during 2007. Phase II is scheduled to include 542 vacation units and additional resort amenities. The planned amenities for Phase II include miniature golf, a flow rider water attraction, a wave pool, a rapid river, and a children's multilevel interactive water park. The additional Clubhouse improvements in Phase II are expected to include the finishing, equipping and furnishing of banquet and meeting rooms, casual and fine dining restaurants, a full service spa, a sales center and an owners' club.
Phase I has been fully pre-sold for $166,000,000. Total sales to date on both phases now total $255,000,000. The estimated costs to complete the construction of Phase I are $73,000,000 for vertical construction and $57,000,000 for other costs such as sales commissions, permits, developer fees, contingencies, closing costs, bank fees and interest, and soft costs such as architectural, engineering, and legal costs. The Company is projecting to spend $24,900,000 in Phase I for the first phase of its clubhouse and resort amenities and an additional $21,100,000 in the second phase.
The Company expects that the first phase of sitework for 600 units at an estimated cost of $19,200,000 will be funded by the Westridge Community Development District ("District") via the sale by the District of bonds issued on a non-recourse basis to the Company ("CDD Bonds"). The District was initially created by the Company and enabled by an order of a Florida State District Court. The CDD Bond issue is being underwritten by KeyBank Capital Markets.
The Project will occupy 122 acres and fronts US Route 27 approximately three miles south of US Highway 192 and two miles north of the intersection of Interstate 4 and US Route 27, between Osceola and Polk Counties in Central Florida.
Malcolm Wright, AMLH President and CEO said, "The Company is creating a unique development for the Greater Orlando Community that combines quality construction with spectacular resort amenities that reflect the entertainment focus of our area. This is designed to provide both our vacation home owners and our future resort guests the opportunity to enjoy a world class resort facility operated by expert management with special advantages also available from 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 management firm with fourteen offices in nine states from Florida to California."
The Sonesta Orlando Resort at Tierra Del Sol is Sonesta's first Orlando resort property. "Orlando is the second largest hotel market in the U.S. and we believe this extraordinary resort, with its oversized guest accommodations, location and sensational amenities, will be an attractive destination for visitors," noted Sonesta President Stephanie Sonnabend. Sonesta's other Florida properties are in the South Florida area, specifically Key Biscayne, Coconut Grove and Sunny Isles Beach. Recently, Sonesta announced plans for a major renovation to the Sonesta Beach Resort Key Biscayne to take place over the next three to four years.
"We're very excited about participating in this outstanding project," said Robert Carmichael, Senior Vice President and Team Sales Leader of KeyBank Real Estate Capital's Orlando Office. He added, "American Leisure presents a compelling combination of development expertise coupled with the synergy of an extensive travel agency network. KeyBank has taken the lead in underwriting both the conventional construction loans and the bond financing for this innovative financial model."
About American Leisure Holdings, Inc.
About KeyBank Real Estate Capital
About Sonesta International Hotels Corporation
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
American Leisure Holdings, Inc., Miami
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