"Punta Mita is now completely sold out for new, large-scale development opportunities," reports Andres Rossetto, a DINE managing director who oversees the complex. Rossetto notes that Strategic's latest deal represents its third purchase of a Punta Mita development site, a trend he says "underscores their enthusiasm for this exceptional resort and residential community."

Featuring nine miles of shoreline, Punta Mita is surrounded on three sides by coves and white-sand beaches. DINE has spent more than $150 million to date developing the site's infrastructure. The firm estimates that the property will have a total real estate value of $2 billion at full build out. Presently home to a Four Seasons resort, Punta Mita also has numerous private residences already built or under construction as well as the Jack Nicklaus Signature Golf Course, regularly ranked among the best resort golf courses in the world.

The Punta Mita master plan calls for development of a second Jack Nicklaus course, more residential properties and additional resort developments, including the St. Regis Resort & Residences slated to open by mid-2008. Founded in 1978, DINE's real estate portfolio includes a variety of commercial, residential and master-planned properties throughout Mexico, with a focus on servicing high-income sectors.

Strategic will pay for the Punta Mita site in a series of installments through 2009. The REIT presently owns 212 luxury hotels and resorts in Europe and North America. Company officials say the footprint of the Punta Mita complex is still being determined, and indicate that they may seek out joint venture partners or might resell a portion of the 53 acres acquired.