Sunterra Corporation announced the
successful closing of its sale of undeveloped land, certain other property
and assets at the Island Links resort in Hilton Head,
South Carolina, to an affiliate of Trew Holdings, LLC, for $12 million.
The Hilton Head resort will continue to be a Club Sunterra destination as
a component site of Club Sunterra Vacations II, formerly known as the Epic
Vacation Club. There will be no impact to current members relating to
destination choices or resort availability.
The Company acquired Island Links in October 2003 in conjunction with
Sunterra’s $25 million bid for substantially all of the assets of Epic
Resorts, including unsold Vacation Interest points at five vacation
ownership resorts in Hilton Head, South Carolina; Daytona Beach, Florida;
Scottsdale, Arizona; Las Vegas, Nevada; and Palm Springs, California, as
well as development land at the Hilton Head location and management
contracts on all of the resorts except Palm Springs.
Sunterra had no immediate plans for the undeveloped land and through this
transaction was able to monetize a significant portion of the total Epic
Resorts purchase price and still retain the primary benefits of the
acquisition. The Company expects to record a gain of $2 million associated
with this transaction.
“This transaction enhances returns to our shareholders and our owners—
we recaptured almost half of the cash invested for the entire Epic
acquisition while maintaining a desirable resort as a Club Sunterra
location,” noted Sunterra’s President and CEO, Nicholas J. Benson. “We
have retained the primary assets of the Epic acquisition—the membership
base of over 24,000 owner families and attractive Vacation Interests in
key destinations in the United States.”
Sunterra Corporation is one of the world’s largest vacation ownership
companies, with over 300,000 vacation owner families and over 90 resort
locations in the continental United States, Europe, the Caribbean, Hawaii