Thursday, March 25, 2010

Westgate Unloads $350M in Assets to fund Timeshare Division

The timeshare division of Westgate Resorts is the focus right now for David Siegel, president and chief executive officer of Westgate Resorts. Siegel is working towards unloading $350 million worth of real-estate and noncore assets to raise money for their timeshare division. A total of 60 assets are up for sale including hotels, airplanes, mobile homes and thousands of acres of undeveloped land in Central Florida.

The challenging economy has affected Westgate Resorts, like many other time-share developers. They have been struggling financially since the market first started to take a turn in 2008. To stay afloat, the company has cut more than one-third of its staff and now liquidating non time-share assets is the next step.

"We're selling our non-time-share assets to raise cash for our time-share operations," Siegel was quoted as saying.

Carlton Advisory Services is handing the sale. Those interested can view the portfolio at CarltonExchange.com. "We definitely have a lot of interest," said Scott Stay, an asset manager for Carlton. "These are selling closer to distressed pricing, but they're not distressed assets." All reasonable bids will be considered.

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