Annual "Invest Southwest" Capital Conference December 10th, 2008 - PhoenixCEOCFO.com

Annual "Invest Southwest" Capital Conference December 10th, 2008

Scottsdale-Based Developer Lyle Anderson Loses Control of Projects

Financing problems have resulted in the Scottsdale-based golf course community developer Lyle Anderson Companies to lose control of four large projects, including Superstition Mountain in Arizona. The other properties are Las Campanas in Santa Fe, N.M., Hokuli'a in Hawaii and Loch Lomond Golf Club of Scotland. The Lyle Anderson Companies have been developers for over 40 years, specializing in high-end golf developments, including Scottsdale's Desert Highlands and Desert Mountain.

The Bank of Scotland has taken control of the properties and handed over management to Oasis Management Resources. Lyle Anderson has responded with a press release saying that "Directors not appointed by the Anderson companies now control the properties. Those directors have indicated they are seeking new developers or to structure new development entities. Independently, the Anderson companies continue their efforts to find new capital to further the development of these properties."

Lyle Anderson has been chasing new capital for over two years. In 2007 the company hired Deutsche Bank Securities to bring in new equity or debt/equity. Several investors are reportedly interested but due to the chaos in the debt and equity markets in 2007 and early 2008, it has caused delays.

The Hawaiian property has been taken over by the restructuring firm of Marotta, Gund, Budd and Dzera LLC. The firm is looking for investors to buy the 1,550-acre Hokulia property and the neighboring undeveloped 660-acre Keopuka parcel. The Hokulia project included plans for over 600 home lots ranging from $1 million to $8 million, a Jack Nicklaus-designed golf course, a spa, tennis courts, a beach house and a club. Construction on the Hokulia project began in early 1998.

Lyle Anderson's plan is to find capital for the distressed projects, work with the existing properties that are not in foreclosure and to take advantage of opportunities to buy undervalued land in the market.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "Golf Community Developer Loses 4 Projects." Catherine Reagor. The Arizona Republic. November. 1, 2008

2. "The Lyle Anderson Companies Prepare for the Future. Companies Plan Three Areas of Focus." Company Press Release. Business Wire. November 3, 2008.

3. "Restructuring Specialists Take Over Hokulia." Associated Press. The Star Bulletin. November 5, 2008.