CALGARY, Aug. 29, 2019
/CNW/ - Genesis Land Development Corp. ("Genesis") is pleased to
report that it has entered into a firm purchase and sale agreement
relating to the previously announced acquisition of approximately
130 developable acres of future residential development land (the
"Land") in north Calgary. It is
anticipated that the transaction will close on September 25, 2019, subject to closing conditions
customary for a transaction of this nature.
The purchase price of $23.7
million will be paid at closing with a cash payment of
$5.1 million, which will be funded
from internal resources, and a Vendor Take-Back Mortgage ("VTB") of
$18.6 million. The VTB is repayable
in two equal installments of $9.3
million in 2021 and 2022, has an interest rate of 5% per
annum and is secured by the Land.
The north Calgary area is
experiencing solid growth and Genesis believes the Land acquisition
fits well with its existing land base in terms of location and time
to market. Genesis intends to develop the Land into a
residential community, with servicing slated to begin in
2020. Upon completion, the community is expected to include
over 800 single family homes, and approximately 7 acres of
multi-family and commercial sites.
Iain Stewart, President and CEO
of Genesis stated, "These Lands provide Genesis with an attractive,
short term residential development opportunity that leverages our
expertise and strong balance sheet by reinvesting capital in
Calgary real estate at an
opportune time."
About Genesis
Genesis Land Development Corp. is a land developer and
residential home builder in the Calgary Metropolitan Area. The Corporation's
common shares are listed on the Toronto Stock Exchange (TSX:
GDC).
ADVISORIES
Forward-Looking Statements
This news release may contain certain statements which
constitute forward-looking statements or information
("forward-looking statements") within the meaning of applicable
securities legislation, including Canadian Securities
Administrators' National Instrument 51-102 Continuous Disclosure
Obligations, concerning the business of Genesis generally and the
proposed acquisition of the Land in particular. 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
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: failure to complete the Land acquisition; local
real estate conditions; the uncertainties of real estate
development and acquisition activity; fluctuations in interest
rates; ability to access capital on favourable terms; not realizing
on the anticipated benefits from transactions or not realizing on
such anticipated benefits within the expected time frame; labour
matters, governmental regulations, stock market volatility 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 Corporation's MD&A under the heading "Risks and
Uncertainties" and the AIF under the heading "Risk
Factors".
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.