By Str3@ml1ne On Apr 28th, 2009
Omega Commercial Finance Receives Bank Commitment for Over $50 Million
Commitment for 50% Loan to Value, Valued At Approximately $58 Million for Mexico Resort Project
MIAMI, Apr 27, 2009 (GlobeNewswire via COMTEX) — Omega Commercial Finance Corporation (Pink Sheets:OCFN) is extremely pleased to announce that the Company. through BBB Developments Mexico, has received a Pre-qualified commitment letter for financing from BBVA Bancomer Bank for the completion of their “Los Corales” resort project located in Puerto Penasco, Mexico.
BBVA Bancomer, founded in 1932 and based in Mexico City, is Mexico’s largest bank. It is 51 percent owned by Grupo Banco Bilbao Vizcaya Argentaria S.A. (BBVA), a Spanish-based multinational financial group. BBVA Bancomer provides a variety of services for both individuals and corporations. Other subsidiaries offer investment banking, trust management and asset appraisal; buy and sell securities and manage mutual funds; design and market insurance products; manage annuities under Mexico’s retirement pension system; and provide bonding services. Additionally, BBVA Bancomer has recently acquired Compass Bank in the United States.
For more information on BBVA Bancomer please go to: www.bancomer.com
As previously announced, Omega in conjunction with BBB Developments Mexico have recently completed Phase I of “Los Corales” a 298 unit high-rise hotel/condo beach resort located on prime beachfront property. The resort will boast full-scale amenities including luxurious landscaping, pools, jacuzzis, spas, a beach club, restaurants, a private beach and private pier leading into the ocean. The resort will be comprised of both condos and a hotel meeting the demands of individuals looking to retire, have a second home, or come for a short term stay. Los Corales is located in Puerto Penasco, a majestic beach resort community located on the Sea of Cortez and found in the same geographical region as Cabo San Lucas. The resort has already sold 30% of its units with all purchasers going to contract and fully executing their obligations.
For more information or sales information on Los Corales please go to:
http://www.smallcapvoice.com/ocfn/los-corales Slide Show or www.loscoralesmexico.com Sales & Resort Information.
In accordance with terms specified, Omega anticipates development funding to commence within the next 60-90 days under the conventional terms of an interest-bearing loan. Because of favorable financing terms in consideration to what is currently being offered under current economic conditions, the Company expects to take advantage of short term economical building opportunities with sizeable lowered costs associated with labor and building materials in Mexico. Thereby, putting it under the original cost analysis associated with the building of this project, while the overall finished valuations expect to remain the same.
Chris Crane of BBB Developments Mexico S de RL de CV stated, “We are extremely excited to be adding BBVA Bancomer to our finance team. The addition of BBVA Bancomer not only aids our development funding efforts, through traditional interest bearing terms, but with our retail consumers as well. We will now have the capabilities to offer developer financing and no longer have to rely on small banks for individual unit financing. We expect to take a buyer directly at close and finance their purchase easily and efficiently.” He also stated, “BBB Developments Mexico has built a wonderful relationship with BBVA Bancomer over the years and we look forward to continuing to build a long enriching relationship that will handle all of our credit and banking needs.”
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Omega Commercial Finance Corp.’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Omega Commercial Finance Corp.’s filings with the Securities and Exchange Commission.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Omega Commercial Finance Corporation