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  1. #1
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    Default Interesting article on the Playa Grande sale to Playa Grande Holdings Ltd.

    I smell a Big Rat on this deal..........Looks like maybe Herb Kohler has had second thoughts about his offer of $83.000.000 US. when it was sold for only $42.000.000 US.


    Gringo
    Last edited by Gringo; 12-16-2004 at 07:27 AM.

  2. #2
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    Quote Originally Posted by Gringo
    I smell a Big Rat on this deal..........Looks like maybe Herb Kohler has had second thoughts about his offer of $83.000.000 US. when it was sold for only $42.000.000 US.


    Gringo
    The dr1 article does not say Kohler offered US$83 million. It says there was an offer from a foreign company, but who this was was not identified.

    dr1 daily news -- 15 December 2004:

    Playa Grande sale disputed
    The Central Bank disputes the sales contract signed by the previous authorities with a group known as Playa Grande Holdings. Originally, there had been talk of the Kohler Corporation buying into the North Coast development, but sources indicate that Kohler has nothing to do with the group interested in the valuable property. The Central Bank announced that it aims to cancel the US$43-million sales contract completely and indicated that a foreign company had offered US$83 million for the same eight million square meter property that includes the famous Playa Grande Golf Course. A source within the Ministry of Finance told Listin Diario that two weeks ago the Central Bank's management sent a communique to the company giving it 60 days to reopen talks regarding the contract. According to the source, in addition to the ridiculously low sales price, the Central Bank says the deal ignored certain commitments, particularly when it included property that had already been granted by the Monetary Board to the Banco Nacional de la Vivienda in the terms of the sale. The Playa Grande property has been on the market since 1997. The Central Bank announced the sale on 16 July, but did not disclose the identities of the company's principals. The Listin Diario says that if the buyer does not accept the renegotiation of the contract, they will take the case to an international court to seek its rescindment.

  3. #3
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    Default Lets just wait and see....

    It will be Interesting to find out just who the parties concerned are and what the final outcome will be, I still think that Playa Grande will become the Casa De Campo and Luperon will be the Cap Cana of the North Coast!

    Gringo
    Last edited by Gringo; 12-16-2004 at 09:19 PM.

  4. #4
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    Latest we now hear is that Kohler is involved in the deal that was signed. Personally would not mind that company being given a good deal because they guarantee quality.
    Last edited by Dolores; 12-19-2004 at 02:07 AM.

  5. #5
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    Default Kohler golf ventures.

    Kohler has aquired ten(10) golf courses in the USA in the last 8-9 years.
    All ten properties are top notch golf courses, some of them with high end residential housing projects.
    It appears, Kohler wants a piece of the action in the Caribbean. Playa Grande is a good example. If this deal is true, areas around Rio San Juan,
    Cabrera and Nagua will benefit. Real estate demand will grow and land value
    will skyrocket. Kohler's plans are to build 3 five star hotels, 36 additional
    holes for golf, supporting infrastructure and an airport.
    Land value in the area is rising just from these rumors. In reality, so far
    no deal is made. El Caribe quoted 2 more European firms are interested in
    purchasing Playa Grande Golf Course (May 27, 2004). I hope someone
    finally makes a move.
    Georgios.

  6. #6
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    Default Playa Grande Property

    Below is what was reported on April 15th of this year.

    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    "El Caribe says the Monetary Board authorized on 25 March the sale of the land to Kohler Company,
    El Caribe reports the sale was transacted for an estimated US$43 million, with US$20 million paid upfront. Calvo did not confirm the amount when asked by El Caribe reporters. The Central Bank’s Deputy Governor Felix Calvo told the newspaper that five companies had participated in the tender organized by Deloitte & Touch and Salomon Smith Barney. Calvo said the government would use the incoming money to help pay local debts and increase its reserve."
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Based on the above it seems Kohler (Playa Grande Holding Corp) may be getting the boot as supposedly someone else has come up with 83 million to buy the Playa Grande property.

    Most recently I heard, and this is pure rumor from a friend of a friend of a friend of a person who claimed to be in the know, that Leonel and the Minister of Tourism met with Kohler representatives on their recent trip to the U.S.

    My guess based on the above rumor is the government is trying to shake out another 10 or 20 million for the deal from Kohler-Playa Grande Holding Corp. Sounds to me like a big stakes poker game bluff is happening.

    I also hope Kohler ends up with the deal as they would put together a development that would knock our socks off. Guess we'll have to stay tuned to find out.

    Hope to hear from others on what they think is taking place. Very interesting.
    I believe this is definitely a big time deal taking place.

    Jack









    Jack

  7. #7
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    I am not in the resort or golf course business, but $83 million seems like way too much money for Playa Grande. I do know you can build a golf course in the US for $6 million or less. 150 acres is enough land for a course. I have the impression that the resort is a littled 'tired', and would require a large investment to bring up to 5-star standards. A little calculating suggests the course itself would not be able to generate more than, say, $4 million in profit for a year. I was in Cancun in November, and the new Jack Nicklaus course was not that busy...we played in a little over 4 hours. In Playa Car, we never saw anyone in front of us, or behind us.
    To be a golf destination, they would have to build a second course. Why would anyone pay that much, regardless of the beauty?

  8. #8
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    Default Cancun vs Playa Grande.

    Playa Grande is rated one of the best 17 golf courses in the world!!!
    I played both courses at Cancun. They don't even come close to Playa
    Grande. Cancun golf is overpriced and offers nothing but almost flat
    terrain and lots of sand traps. NO COMPARISON.

    The "Kohler" sale includes a large amount of land adjacent to the golf
    course at Playa Grande. tottaling over 900 acres approx. The main
    attraction is golf. The profits projected are to be generated from the
    hotels, villas and other related supporting amenities such as restaurants,
    disco's, stores, theaters, ocean sports etc.

    The proposed airport is also a major money making operation servicing
    major world class airlines that carry 5* travellers from all over the world.
    These kind of people want 5* service, accomodation and top notch golf
    facilities. The are willing to pay 1000's of dollars. Kohler knows that. Unlike
    some seasonal Kohler golf aquisitions in the USA, Playa Grande is a 365 day
    golf destination able to supply a possible 60,000 rounds of golf a year.

    Kohler can "steel" this deal at $60,000,000 US. We shall see...

    Georgios.

  9. #9
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  10. #10
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