MIAMI, FL--(Marketwire -07/30/12)- Caribbean Casino Gaming Corp. (CGAQ), "the Company," is pleased announce that it has signed a sales agreement to purchase a resort complex in Puerto Plata, D.R.
The Fun Tropicale is located just east of Puerta Plata and was designed around the Robert Trent Jones Championship Golf course.
The signed sales contract stipulates "100 apartments (condos) at the Village Caraibe, Fun Tropical, the business of hotel & resort operation, the club house, and all the amenities, 2 restaurants, 2 swimming pools, beach club restaurant and bar, theatre stage, bar, 2 tennis courts, volleyball court, soccer field, gymnasium, sauna, medical clinic, front desk offices, retail shops, playground, laundry and all the furniture and appliances. It also includes the option to build 100 new condos, a casino and shopping mall."
A 2008 appraisal of the property is posted at http://www.otcmarkets.com/financialReportViewer?symbol=CGAQ&id=86808
The value established then, at the height of the market, was $17,380,041. "A conservative estimate of its value today is around $13M," said Steven Swank, CEO. "We jumped at this opportunity." The exact terms of sale are confidential by request of the seller.
The Company has many options once it takes ownership of this resort. Early plans range from flipping the entire property in 18-24 months to operating the resort, adding a casino and selling the condos as the real estate market improves in that region.
"Everyone knows the time to buy is when the market is bottoming," stated CGAQ Consultant, Frank Leiber, "We believe this purchase has been timed perfectly. The possibilities for profit have increased dramatically for CGAQ."
Swank is in the middle of negotiations with several lenders to find the best terms. The property's huge collateral value indicates that reasonable rates will be available to the Company.
This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation.
Caribbean Casino and Gaming Corp.