Landmark Land Co. to Sell Holdings for $739 Million
Landmark Land Co., owner of several well-known resorts, will sell most of its holdings for $739 million to a group that includes Landmark managers and Japanese investors, the company announced today.
Properties involved in the deal include the Palm Beach Polo & Country Club in Florida, Kiawah Island in South Carolina, Oak Tree Golf and Country Club in Oklahoma and Carmel Valley Ranch, Moreno Valley, Mission Hills, La Quinta, PGA West and Oak Valley, all located in California.
The agreement, intended to keep federal regulators from putting the company into receivership, must be approved by regulators and stockholders.
Landmark put its real estate up for sale last year to try to bring Oak Tree Savings Bank, a Landmark unit, in compliance with new capital requirements created by the savings and loan bailout.
The lead investor in the agreement is Daiichi Real Estate Co. of Tokyo, which would assemble a team of investors including the senior management of Landmark, several other Japanese investors and some European partners. Senior management involved will be Landmark founder Gerald G. Barton and Ernest O. Vossler and Joe W. Walser Jr.
“From the start, this company will be in a strong position and is committed to developing and operating world-class golf-centered communities on a conservative financial basis,” said Barton. “Throughout our operations, we intend to maintain and expand the style and high standards that are the hallmark of Landmark resort, golf and residential properties.”
The buyout, for which the outside partners are providing most of the money, would be about 60% financed by Oak Tree.
The first stage of the deal is to close on or before March 31. It would include retaining the 3,500 Landmark employees in their current jobs as well.
As part of the next stage, the investors would retain a six-month option to buy some additional parcels for about $92 million.
The company said it expects pretax gains of about $250 million from phase one of the transaction and further pretax gains of about $35 million if the second phase is fully consummated.
