Pender International announces that it has entered into a definitive agreement to purchase, through its wholly-owned subsidiary Montebello Developments Corp., “The View” hotel and golf course complex, and adjacent undeveloped land for a purchase price of $116 million. The complex is located in Niagara Falls, Ontario. The transaction is expected to close prior to May 1, 2005.
The complex was purchased because of its significant upside potential and the opportunity for Pender to add significant value. Pender is considering the addition of a second hotel tower consisting of 500 rooms as well as a 35,000 sq. ft. convention centre. The Company has contracted SF Partnership to complete a feasibility study on the proposed expansion. Furthermore, discussions are underway with two major contractors for the construction of the new tower and convention centre.
The John Daly designed eighteen hole, championship golf course is scheduled to commence operations on May 1, 2005. Pender anticipates that the opening of the golf course will attract a significant number of golfers and their families, which are anticipated to substantially increase hotel occupancy.
Adjacent to the golf course is substantial undeveloped land capable of supporting the development of 200 residential building lots. Pender expects to develop these lots over the next several years.
Company chairman Kalson G.H. Jang believes that the acquisition of this property fits well with the Company’s strategy of investing in undervalued assets with significant upside potential. In addition, Pender’s real estate development and financial expertise will add substantial value to this project.