Fairway Land to Merge With Arizona Firm : Laguna Niguel Company Develops Golf Courses
Fairway Land Co., a Laguna Niguel golf course developer, has agreed to be acquired by a Scottsdale, Ariz., company in a transaction valued at about $25 million.
Prime Financial Partners, a publicly traded limited partnership with interests in financial services and real estate, said it expects its merger with privately held Fairway to be completed in July.
Fairway is developer and operator of the Marbella Golf and Country Club, a private club and residential community on 325 acres in San Juan Capistrano. The project includes an 18-hole golf course, 215 custom homes and 100 golf villas.
The 6,600-yard championship golf course, designed by Jay Moorish and golf professional Tom Weiskopf, should be completed by July, Fairway President Philip R. Jacoby said. Construction of the residential units is scheduled to begin in March, 1989.
Fairway said sales of Marbella home lots totaled $40 million in 1989, while sales of club memberships totaled $10 million. Memberships at the exclusive club currently cost $65,000.
Jacoby said the merger would benefit Fairway shareholders by giving them ownership in Prime Financial, whose partnership securities are traded on the American Stock Exchange.
He said the deal will also provide “a built-in source of financing for future Marbella-type projects” because Prime has expertise in real estate syndication and fund raising.
Fairway has several other golf course projects under consideration, Jacoby said, including one in San Diego County. He declined to discuss details of those projects.
Fairway has 50 employees and expects to hire 150 more workers in 1989 when the Marbella club opens.
Prime Financial said the merger is subject to a vote for both firms’ shareholders.
Under terms of the agreement, Prime Financial will acquire all Fairway stock in exchange for issuing 6 million new Prime partnership units to Fairway shareholders.
Prime will also issue to Fairway holders 5 million warrants for units, redeemable for $3.75 each for a period of 5 years.