CALGARY,
Oct. 14, 2014 /CNW/ - Genesis Land
Development Corp. (TSX: GDC) (the "Corporation" or "Genesis") is
pleased to report it has entered in to a firm purchase and sale
agreement for the acquisition of approximately 350 acres of
exceptional land located in southeast Calgary along the Bow River. The
property also overlooks the Bow River Valley, with views of the
Rocky Mountains and is just 2 kilometres south of the $1.3 billion recently opened Calgary South Health
Campus / Regional Hospital (see map).
The land will be developed into a residential
community, with construction forecast to begin in 2021. Once
completed, the community is expected to include nearly 2,100 homes,
parkland and supporting community commercial development. The
land is currently zoned Future Urban Development within
Calgary's Southeast Planning
Area.
This $52.5 million
acquisition, the first mid-term land purchase in seven years,
continues the Genesis strategy of focusing its portfolio on
residential lands within the Calgary Metropolitan Area and is expected to
provide a long-term supply of single family and multi-family home
sites. The Corporation will pay for the acquisition from its
general cash resources, with $12.5
million due on closing (scheduled for January 6, 2015), and the remainder paid over
five years.
President and CEO Bruce
Rudichuk commented, "We are very excited about our future in
the Calgary Metropolitan Area and
developing this extraordinary land, which will enable Genesis to
create a unique and desirable master-planned community. The site's
location and varied topography will assist us in creating diverse
neigbourhoods ranging from family-friendly and affordable
communities to intimate benchland enclaves with river views."
He continued, "It has all of the essential
characteristics we are seeking - and will encompass a large scale
community with multiple product categories in a rapidly growing
area within the City of Calgary.
The development time-frame will support the planned growth of both
our land development and homebuilding businesses and allow us to
once again show the marketplace the kind of communities Genesis is
capable of creating."
Genesis Chair, Stephen
J. Griggs, stated "This acquisition demonstrates the
consistent execution of our strategic plan and balances the
Company's portfolio between lands that generate strong cash flow in
the short term, and lands which sustain cash flow over the longer
term. We anticipate, as part of our balanced approach toward
the uses of capital, that Genesis will pay for this investment from
cash flow, allowing us to continue to have a conservative capital
structure. It will support our increasing momentum and enhance our
transition into a leading land development and home-building
company in Calgary".
Genesis Land Acquisition Southeast
Calgary
About Genesis
Genesis is an integrated, award-winning land
developer and residential homebuilder, creating innovative and
successful communities in the Calgary Metropolitan Area. Genesis is
committed to supporting its communities through partnerships like
the Genesis Centre of Community Wellness and Genesis Place
Recreational Centre. Genesis owns a large portfolio of entitled
residential and mixed-use land, which is exceptionally well
positioned to benefit from the continued robust activity in the
Alberta economy. The Corporation's
common shares are listed on the Toronto Stock Exchange (TSX:
GDC)
ADVISORIES
Forward-Looking Statements
This news release contains certain statements
which constitute forward-looking statements or information
("forward-looking statements") within the meaning of applicable
securities legislation, concerning the business, operations and
financial performance and condition of Genesis.
Forward-looking statements include, but are
not limited to, statements with respect to the nature of the lands
to be acquired, the anticipated closing date and financing of such
acquisition and the anticipated development potential of such
lands, including the ability to bring new developments to market,
anticipated general future economic and business conditions and the
anticipated impact on Genesis' development and home building
activities, Genesis' business strategy, including the geographic
focus of its future and the ability of Genesis to develop projects
(and the nature of such projects). Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Although Genesis
believes that the anticipated future results, performance or
achievements expressed or implied by the forward-looking statements
are based upon reasonable assumptions and expectations, the reader
should not place undue reliance on forward-looking statements
because they involve assumptions, known and unknown risks,
uncertainties and other factors many of which are beyond the
Corporation's control, which may cause the actual results,
performance or achievements of Genesis to differ materially from
anticipated future results, performance or achievement expressed or
implied by such forward-looking statements. Accordingly, Genesis
cannot give any assurance that its expectations will in fact occur
and cautions that actual results may differ materially from those
in the forward-looking statements.
Factors that could cause actual results to
differ materially from those set forth in the forward-looking
statements include, but are not limited to: the impact or
unanticipated impact of general economic conditions in Canada, the United
States and globally; the impact of contractual arrangements
and incurred obligations on future operations and liquidity; local
real estate conditions, including the development of properties in
close proximity to Genesis' properties; timely leasing of
newly-developed properties and re-leasing of occupied square
footage upon expiration; dependence on tenants' financial
condition; the uncertainties of real estate development and
acquisition activity; the ability to effectively integrate
acquisitions; fluctuations in interest rates; ability to raise
capital on favourable terms; the impact of newly-adopted accounting
principles on Genesis' accounting policies and on period-to-period
comparisons of financial results; not realizing on the anticipated
benefits from transactions or not realizing on such anticipated
benefits within the expected time frame; and other risks and
factors described from time to time in the documents filed by
Genesis with the securities regulators in Canada available at www.sedar.com, including
the MD&A under the heading "Risks and Uncertainties" and the
Annual Information Form under the heading "Risk Factors".
Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release and, except as
required by applicable law, Genesis does not undertake any
obligation to publicly update or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Genesis Land Development Corp.
PDF available at:
http://stream1.newswire.ca/media/2014/10/14/20141014_C7524_DOC_EN_43004.pdf