On Feb. 17, 2009 Omega Commercial Finance Corporation (OTC BB: OCFN) confirmed in a press release that it has entered into a Definitive Agreement with BBB Developments Mexico and upon closing will acquire 100% ownership of 3.9 acres of beachfront property in Puerto Penasco (Rocky Point), Mexico, in a Share Exchange Agreement. The deal involves an $18 million purchase with an estimated total project value of $116 million.
The statement says that Los Corales Resort, a 298 unit high-rise hotel/condo beach resort located in the Mirador section of town near Manny's Beach Club, is currently 30% sold out with all purchasers going to contract and fully executing their obligations. Because the units are strategically being sold at 20-30% below current market value, Omega anticipates that most units will be sold by the conclusion of this year.
Omega has been working with BBB Developments Mexico to develop this project for the last two years. The original plans were to develop a joint venture on the project; however, both parties recently decided that the acquisition by Omega would be the best alternative to accelerate the project under current market conditions.
Jon S. Cummings IV, CEO, stated, "We are extremely excited about the opportunities that this latest acquisition offers our core business operations. We are confident that Los Corales will help to substantiate our 2009 business model. This along with the addition of our latest corporate divisions should enable our company to consistently perform this year." He added, "We are also very proud that because of this acquisition, we are now estimating today's pro forma book value upon closing it will be at .82 cents a share, on a going forward basis. We expect to continue to bring additional assets and opportunities to light on our shareholders behalf."
Chris Crane from BBB Developments Mexico stated, "We are very excited to get our project underway, with the current and past years' market conditions it set us back a bit but this acquisition and partnership between us and Omega paves the way for the funds needed to complete the project. We have stood by Omega throughout the process always confident in their great business sense and ability to become the partner we needed. All components to get the project underway from our development team have been completed so this year will pave the way for a great new addition to the Rocky Point skyline."
Omega Financial's Web site can be found at www.omegacommercialfinancecorp.com
The Web site for Los Corales is www.loscoralesmexico.com/
