Technical Olympic agrees to become sole owner of Transeastern joint venture

By Caroline Salls

Pittsburgh, June 5 - Technical Olympic USA, Inc. entered into an agreement with Falcone/Ritchie LLC, under which Technical Olympic would become the sole owner of the Transeastern joint venture, according to an 8-K filed with the Securities and Exchange Commission.

According to the 8-K, one of the Falcone entities owns 50% of the equity interests in the Transeastern joint venture.

Technical Olympic also agreed to release the Falcone entities from claims related to the asset purchase agreement under which Technical Olympic bought its interest in the joint venture.

Effectiveness of the agreement is subject to reaching settlements with each tranche of Transeastern's lenders and the payment by the joint venture of amounts needed to take down the properties specified in the agreement.

As previously reported, Technical Olympic acquired its 50% interest in the Transeastern joint venture on Aug. 1, 2005, when the joint venture acquired substantially all of the homebuilding assets and operations of Transeastern Properties, Inc. for $826.2 million.

Technical Olympic is the managing member of the joint venture through wholly owned subsidiary Tousa Homes LP.

The company said it is still working toward a global resolution with lenders in relation to the joint venture.

Technical Olympic is a Hollywood, Fla., designer, builder and marketer of single-family residences, town homes and condominiums.

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