Directors of Del E. Webb Corp. have approved a restructuring plan that focuses the company's future on real estate activities in which Webb will sell its leisure operations, including its five marinas on Lake Powell in Utah and Arizona.
"Present shareholder value will be maximized by the sale of our leisure facilities and use of the proceeds to strengthen the company's balance sheet and provide the capital necessary to continue expansion of our real estate business," said Philip J. Dion, chairman and chief executive officer.In recent years, Webb's most profitable operations on a continuing basis have been real-estate oriented, and particularly its adult community developments. "This, our greatest past and present strength, is where we will concentrate our efforts," said Dion.
The leisure operations Webb owns and manages had revenues of $171 million in 1987, $127 million from the three Nevada casino hotels and $44 million from recreational properties.
When the restructuring is complete, said Dion, Webb will consist of Del E. Webb Communities Inc. and Del E. Webb Commercial Properties Corp. Communities is the master-planner and developer of Sun City West and Sun City Vistoso in Arizona and Sun City Summerlin, its newest adult community in Las Vegas.
Dion said the board decided that Webb's continuance in three distinct businesses real estate, gaming and recreational properties was not viable for a number of reasons.
Dion indicated that 1988 would be a difficult year for Webb on an operating basis due to the downturn in southwestern real estate markets caused principally by the effects of the recent federal tax legislation and deregulation of financial institutions which financed a variety of uneconomic real estate ventures.