St. Joe Company Adopts New Real Estate Strategy

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(WATERSOUND, FL) -- The St. Joe Company, which controls several high-end golf and resort-style communities between Destin and Panama City Beach, recently announced its Board of Directors adopted a new real estate investment strategy that will reduce costs by focusing on lowering risk.

Going forward, St. Joe says it will cut back on infrastructure and amenities in developing its master-planned communities. It will also reposition its communities to increase sales, which could include selling properties in bulk, selling undeveloped parcels and lowering sales prices.

The move, according to St. Joe, will reduce expenditures by about $190 million over the next 10 years.

"In 2011, the new Board directed management to reduce expenses," said new CEO Park Brady. "We have met that goal and, as a result, we currently expect to have positive operating cash flow in 2012, excluding discretionary capital expenditures. The next request of our board was the evaluation of our assets and development of a strategy to reduce future capital outlays and enhance the risk-adjusted return on investment while continuing to minimize potential risk to the company in light of uncertain economic conditions. We believe that this new strategy will fulfill that request."

St. Joe, one of the largest private landowners in Florida at one time, has made considerable progress in assessing the recoverability of specific properties under the new strategy, but has not yet completed the analysis. Based on the work performed to date, the company currently anticipates it will record an aggregate non-cash charge for impairment associated with these projects that may range from $325 million to $375 million in the fourth quarter of its year ended December 31, 2011. The Company expects to finalize its estimates by the end of February.

The St. Joe Company is a Florida-based real estate developer and manager that owns approximately 573,000 acres of land concentrated primarily in Northwest Florida and has significant residential and commercial land-use entitlements in hand or in process. The majority of land not under development is used for the growing and selling of timber or is available for sale. The company also owns various commercial, resort and club properties.

Among St. Joe's higher profile golf course development and resort-style communities are Camp Creek Golf Course, a top-rated daily-fee layout designed by famed architect Tom Fazio in WaterSound, family-friendly Origins course in WaterSound, nearby WaterColor Inn, one of the country's top boutique hotel and resorts, Shark's Tooth Golf Club, a private club community and Southwood Golf Course in Tallahassee.

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Haseko wants to sell Hoakalei Country Club course

The Hoakalei Country Club, designed by golf pro Ernie Els, is up for sale, three years after it opened in Ewa Beach.

Sharene Tam, vice president of Haseko Development Inc., the course's developer, was recently confirmed to that it is being sold. Tam told a Pacific Business News reporter via email that Haseko has received multiple offers to buy the golf course over the years and has considered each one.

"We have not accepted any proposals thus far, but it remains our long-term goal to find a buyer who shares our vision for Hoakalei Resort," Tam was quoted as saying.