Jul 31 2015
Diamond Resorts International, Inc. announced today that it has entered into an agreement with an affiliate of Och-Ziff Real Estate for the development of a new resort in Kona, Hawaii. The resort will be developed consistent with Diamond’s approach to sourcing inventory in a capital-light, cost efficient manner. The resort is expected to offer 144 units.
Commencement and delivery of the project is subject to certain conditions precedent and rights of Och-Ziff Real Estate including completion of due diligence, completion of design and site plans, and obtaining required permits. Subject to such conditions being satisfied, the units will be delivered on a phased schedule, with the first units expected to be delivered in the first quarter of 2017.
David Palmer, President and CEO of Diamond stated, “We are thrilled to be working with Och-Ziff Real Estate to bring into our Hawaii Collection a fantastic new resort. We are consistently looking for opportunities to complement our inventory recapture program through structures that add inventory in an efficient manner. We anticipate that this resort, when completed, will provide us with inventory to support over $400 million of total VOI sales, with attractive potential returns on investment. Importantly, we will be able to further capitalize on our recently-opened Kona sales center when the resort is completed.”
Steven Orbuch, President of Och-Ziff Real Estate, stated, “We are excited about the opportunity to work with Diamond on this innovative transaction and look forward to developing a long-term relationship that helps grow Diamond’s inventory in this manner.”