Message #1 From:
NewsBot Date: April 15, 2008 08:00:13 PM
Meritage Announces International Development Venture With the Related Group -- America's Pre-Eminent Developer
Meritage Announces International Development Venture With the Related Group -- America's Pre-Eminent Developer
Meritage Hospitality Group Inc.
(PINKSHEETS: MHGU), one of the nation's premier franchise operators,
announced that it has entered into a strategic partnership with The Related
Group in a joint venture called TRG-Meritage Bahamas, LLC. The joint
venture will develop an 884-acre ultra-luxury destination resort community
on the island of Eleuthera, The Bahamas. The development has received
approval in principal from the Bahamian government's National Economic
Council.
Robert E. Schermer, Jr., CEO of Meritage Hospitality Group stated, "The
Related Group, owned by Jorge Perez and Stephen M. Ross, is the preeminent
developer in North America. In addition to their large United States and
South American development portfolios, the two principals were former
stakeholders in Atlantis on Paradise Island in The Bahamas, operated by
hospitality icon Sol Kerzner."
Under the joint venture, Meritage and The Related Group are planning to
co-develop an ultra-luxury destination resort community on South Eleuthera
Island. The project is intended to be one of the world's leading,
low-density, low-rise, environmentally sensitive resort communities. In
addition, Meritage and Related will jointly oversee the sales and marketing
services, and provide co-development services. Rockford Construction of
Grand Rapids will provide owners representation services and also provide
co-development services for the project. The Related Group will function
as the lead developer for the new high-end golf course and marine oriented
community. Mr. Schermer added, "We are honored that one of the world's
finest developers is joining our quest to fulfill the dream envisioned by
the original land owner, George Baker, legendary Bahamian businessman and
former member of the Bahamian House of Assembly. Mr. Baker has been the
faithful steward of this crown jewel for the past fifty years and I know
Jorge Perez shares Mr. Baker's vision for this site. We look forward to
working with the entire Related team to make this project a reality."
In addition to participating in the sales and marketing and development
fees related to the overall project, Meritage holds a 23.75% stake in the
entity that holds the property interest in the 884-acre oceanfront
property. Meritage's interest in the joint venture entity will be half of
this percentage, and will be subject to future dilution related to
financing requirements or new equity partners. Mr. Schermer stated,
"Related is currently finalizing the master plan and development schedules.
Once this is completed, a project launch should follow the sub-division
permits which traditionally take twelve months after land closing to
engineer and process. This development effort is a watershed event for our
Company as well as the citizens of South Eleuthera."
About The Related Group:
The Related Group is the nation's finest developer and manager of premier
real estate properties. The combined Related companies have developed over
$25 billion worth of real estate developments. This level of activity sets
Related apart from its competitors and its developments set the standard
for excellence within the real estate industry. A combination of passion
for quality, forward thinking, experience, imagination and the skill to
build market-leading properties has made them a world-renowned development
company. New projects include large-scale, multi-family developments as
well as luxury high-rise and innovative mixed-use buildings. In addition
to its North American and Bahamas projects, Related Group is developing
projects in Argentina, Colombia, Costa Rica, Mexico, Panama and Uruguay.
SAFE HARBOR STATEMENT
Certain information in this new release, particularly information regarding
future economic performance and finances, and plans, expectations and
objectives of management, constitutes forward-looking statements. Factors
set forth in our Safe Harbor Statement, in addition to other possible
factors not listed, could affect the Company's actual results and cause
such results to differ materially from those expressed in forward-looking
statements. Please review the Company's Safe Harbor Statement at
http://www.meritagehospitality.com.
