Of the 65 units, market reports estimate that 20 studio apartments had rented for about $85 a day; 26 one-bedroom units at $120; and nine two-bedroom units at $160.

In the shareholder's statement, the company advised it acquired about 3,000 timeshare intervals that should yield about $70 million in timeshare revenue over an anticipated four-year sell-out period.

The company expects to begin sales sometime in September through its Bluegreen Vacation Club, with plans to complete renovations by February next year.

George Donovan, Bluegreen president and chief executive officer, says in a prepared statement the acquisition is important for the company because it fulfills about half of Bluegreen's forecasted inventory requirements through the end of 2002.

"(The acquisition) will allow Bluegreen to add a higher-priced product to our club system, effectively increasing average sales price and overall revenues, while taking advantage of our sales distribution system that accelerates annual sales volume by allocating product to multiple sites," Donovan says. "Most of the inventory will be sold off-site, and we are ready to hit the ground running with this.''

News of the acquisition comes as the Boca Raton company reported a 60% drop in net revenue for the fiscal year ended April 1.

The company reported a net gain of $2.7 million, or 11 cents a share, on total sales of $226.3 million for the year ended April 1, compared with a net gain of $6.8 million, or 28 cents per diluted share, on total sales of $214.5 million for the same period in 2000.