Developer Assets of Ginn’s Tesoro Preserve Sold to ValueRich Subsidiary
VR Preserve Development LLC becomes the Declarant of Tesoro Preserve Development. Commits to build amenities.
WEST PALM BEACH, Fla.–(BUSINESS WIRE)–ValueRich, Inc. (NYSE Amex: IVA) announced today that VR Preserve Development, LLC (“VR Preserve”), our wholly owned subsidiary, acquired certain assets related to the Tesoro Preserve Development located in Port St. Lucie, Florida (“the Development”). The Tesoro Preserve Development is a private 341-acre community with 440 individual home sites of real property located on the St. Lucie River in St. Lucie County, Florida. It was developed by luxury property developer Ginn-LA (Bobby Ginn and financial partner Lubert Adler).
Included in the asset purchase was six (6) waterfront single-family residential lots, seventy-six (76) single family residential lots, approximately seven (7) acre commercially zoned parcel, and certain related Appurtenances, Improvements, Personal Property, Intangible Property, Assigned Agreements, Leases, Interests as Declarant under the Master Declaration, and Association Rights.
VR Preserve will become the Declarant of the Tesoro Preserve Development. As the Declarant of the development, the Company has the right to require homebuilders to enter into Developer’s Homebuilding Royalty Agreements entitling the Company to certain development fees. As consideration for the acquisition, the Company paid $250,000 in cash. As additional consideration for the purchase, the Company entered into a Development Agreement under which it agreed to complete certain development work including construction of a social club, swimming pool and tennis courts. As required by the Development Agreement, VR Preserve deposited approximately $1,400,000 with an escrow agent representing the estimated costs to complete the work under the Development Agreement. The funds were lent to VR Preserve by ValueRich, Inc.
“I realize the purchase of the Tesoro Preserve assets is a shift in our business strategy, but the fact is that the financial structure in our country has changed, business strategies have shifted and our economy has new rules. There was over $30,000,000 worth of infrastructure put into The Tesoro Preserve Project by the original developer and this deal could only take place in the environment we are currently in. We are hopeful that we can integrate our media and production facilities into this deal to better market and communicate the story. The Tesoro Preserve development is a large project that has many moving parts, we believe that the development will yield years of results for our shareholders,” said Joseph Visconti, CEO of ValueRich, Inc.
ValueRich, Inc. operates online media-based properties for corporate and financial professionals, it also has acquired certain assets of The Tesoro Preserve Development through VR Preserve Development, LLC, a wholly owned subsidiary of ValueRich, Inc. The Company’s corporate mission is to utilize its assets to create shareholder value.
This press release contains statements, which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of ValueRich, Inc. And members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
I may be incredibly dense or maybe this "happy hour" Margarita is getting to me but what exactly does ValueRich do? I can’t even tell by the description of the company if they are in the real estate development business or not.
Toby, have you heard of these guys?
2nd mouse gets the cheese
bought all that for the price of one lot ( in the bubble ) maybe what they do is buy assets cheap, not a lot in escrow ? Last escrow at Tesoro was never escrowed and stolen by booby ginn
Reply to John
They are not a real estate development company. I suspect they are sitting on cash and could not pass up what seems to be a good opportunity. Here is a company description from WSJ Online:
ValueRich, Inc. operated various online and offline media-based properties for corporate and financial professionals. The Company’s properties included iValueRich.com, ValueRich magazine and the ValueRich Small-cap Financial Expo. iValueRich.com is an online community providing a range of business solutions for public companies and many industry-related businesses and professionals that seek to do business with each other.