Diamond still pursuing Cypress Pointe owners?

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

I had thought that Diamond stopped all reacquisitions to build up capital reserves while they pursue new credit lines (rumor is if they can secure favorable credit terms in time they'll try to move on the Bluegreen deal at a lower offer per share than previously announced)....

However, it looks like one of their acquisition brokers is still actively pursuing Cypress Pointe owners... Could Diamond be quietly trying to take over the phase managed by VRI? That sign by the stairs must be more than just a little irritating!

Is anyone else aware of reacquisitions moving forward for this resort?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

I was suppose to be selling back our two Polo Towers units to DRI but, at this point my E-mails are going unanswered and when I attempt to call their 888 number, all I get is a fast busy signal. At this point I'm assuming that the credit crunch has killed this deal and DRI just never bothered to let me know.

Fortunately, knowing DRI management I've made alternate plans for usage of my DRI Club points. It won't kill me but I'd just as soon have sold these units back to DRI and put the MF savings into my savings account. Eventually, there would have been something of better quality with better management come along that I'd have purchased. As for now I'll just have to sit back and see how bad the SA is going to be after Polo Towers/DRI management let me down once again by not installing the water treatment system to avoid another outbreak of legioniare's at Polo Towers. Last time the SA was a little over $200. 8 years down the road my bet is they hit owners for another $500. Lord knows that, at $50 per 2 bedroom unit, there won't be squat in the reserve fund to pay for any clean up or water treatment system this time either.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

(rumor is if they can secure favorable credit terms in time they'll try to move on the Bluegreen deal at a lower offer per share than previously announced)....

This is a good bet since DRI would have just cancelled the deal rather than continue it unless they thought some type of deal MAY be possible if the planets align properly.

However, the current financial market conditions are not favorable for such alignment. I would personally give it less than 25% chance of happening due to the following:

1) M&A is just not happening right now. It may change in 6 months. But, it's not happening now. Investment bankers are sucking wind big time. There have been no IPOs in almost 3 months. After the NASDAQ crash in 2001, it was only 6 months that IPO activity stopped. It's likely that only the most attractive financial transactions will be occurring. In other words, highly accretive, positive cash flow deals where significant new debt is NOT required to do the deal. Of course, government bail outs will happen as well.

2) Unless Bluegreen is in a cash crunch within the next year, there is no reason for them to sell out for less than a strategic multiple. My understanding is that Bluegreen's credit facilities are open until at least 2010. That means they can keep selling through 2009. Management certainly isn't motivated since their options would probably be under water meaning they get nothing in an acquisition except for severance pay and no job. But, item 1 above means there are no strategic deals being done.

3) If DRI backers are in the casino industry, even those companies are having great difficulty in this market. Inside access to money may be next to impossible at the same time other sources of easy money are non-existent.

What wil really be telling is Bluegreen's next quarterly earnings report. We will see first hand if the credit crunch and bad economy has hurt sales. If they are significantly impaired, than anything is possible. If revenue forecast is weak, but cash position remains strong, then I say no deals happens.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Sales continue

I had thought that Diamond stopped all reacquisitions to build up capital reserves while they pursue new credit lines (rumor is if they can secure favorable credit terms in time they'll try to move on the Bluegreen deal at a lower offer per share than previously announced)....

However, it looks like one of their acquisition brokers is still actively pursuing Cypress Pointe owners... Could Diamond be quietly trying to take over the phase managed by VRI? That sign by the stairs must be more than just a little irritating!

Is anyone else aware of reacquisitions moving forward for this resort?

DRI continues to offer conversions from fixed weeks to the THE CLUB trust at Cypress Pointe and other DRI affiliated resorts. This is not a "reacquisition" but really a new sale as you give up your deed and become a RTU Trust member while paying thousands to change. Personally I'm not a fan but some owners see it as a good deal. That is the DRI sales model now so if they stopped that they would basically be shutting down. I don't think that's in the cards although there have been cutbacks in the number of staff and hours they are open.