Pender International Inc. has entered into an agreement to purchase 100% of the issued and outstanding shares of Montebello Development in exchange for restricted common stock. Montebello Development is developing Salchi Bay Development—a 25-acre ocean front resort in Huatulco, Mexico. Pender intends to begin construction next week and anticipates completion of 12 private villas by the end of this year. Thereafter, we anticipate an additional 48 units to be completed in 18 months. The property is located on a 1.5-mile private beach on a secluded bay less than 20 minutes drive from Huatulco International Airport. Huatulco is one of the newest and fastest growing resort areas in Mexico.
Vic Dominelli, Director of Pender, stated that “the long-term benefits of our Huatulco project will add significantly to our portfolio of assets.” He explained that Pender will retain an on-site supervisor to conduct daily inspections, supervise construction quality and provide regular reports on construction progress. “At the completion of the project,” he continued, “Pender will evaluate adjacent properties for development that are included in the right-of-first refusal accompanying this project development.”
Orlando Silvestri, President and CEO of Pender, noted that Pender has taken a greater interest in the development of properties, “with the expertise with which we have surrounded ourselves, we believe that Pender will have more opportunity to invest in a diversified portfolio of companies and projects—Salchi Bay Development and Armistice Resources being primary examples. We continue to evaluate some very interesting properties in Europe, as well as a 400-acre resort and casino in the Caribbean. We would expect the Pender property portfolio to exceed $350 million in value by the end of the 2nd quarter.”