Safe & Green Holdings Announces Safe and Green Development Corporation has Entered into a Contribution Agreement to Form a Joint Venture to Develop the Lago Vista Property
05 12월 2023 - 12:00AM
Business Wire
Safe and Green Development Corporation to
contribute Lago Vista property in exchange for membership interest
in the proposed joint venture valued at $11.5 million
Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe &
Green Holdings” or the “Company”), a leading developer,
designer, and fabricator of modular structures for residential,
commercial, and point-of-care medicine, today announced that its
subsidiary, Safe and Green Development Corporation (“SG DevCo”),
has agreed to enter into a contribution agreement with an affiliate
of MNO Partners to form a joint venture (the “JV”) to develop the
Lago Vista property. MNO Partners is a community-centric real
estate development firm that sponsors vibrant, healthy, and active
places to live in the Austin-San Antonio corridor. The cost to
fully develop the property is estimated to be approximately $80
million dollars, which includes the development of the project from
conception to completion.
The Lago Vista property was originally purchased by SG DevCo’s
subsidiary for $3.5 million in 2021. Pursuant to the terms of a
Contribution Agreement, SG DevCo’s subsidiary will contribute the
property to the JV and receive as consideration for the property
contribution a membership interest in the JV valued at $11.5
million. MNO Partners will lead the development process and, after
the completion of the feasibility period, will be required to
submit permits for the first phase of the project within 11 months
from the execution of the Contribution Agreement. It is anticipated
that the JV will secure construction financing, which is a
condition to the closing of the JV. The primary focus during the
early stages of design include luxury condos and the marina.
David Villarreal, President & CEO of Safe and Green
Development Corporation, stated, “We are excited about this
partnership as we're making progress and aiming to develop the
project to serve as a model of sustainable, community-focused
development amid our portfolio. Our JV partner will be contributing
financial resources to the development of this project. Their
financial commitment to the project strengthens our joint capacity
to execute successfully and deliver on the project. The initial
estimate for the total project cost is approximately $80 million.
We believe this collaboration will generate significant value for
SG DevCo and its stockholders.”
Paul Galvin, Chairperson and CEO of Safe & Green Holdings,
added, “This agreement is the culmination of tremendous efforts on
the part of both the SG DevCo and Safe & Green Holdings teams.
Importantly, we believe this agreement will unlock value from the
Lago Vista property, and is further validation of our strategic
decision to spin off SG DevCo earlier this year. We could not be
more excited about the outlook for both of our respective
companies.”
About Safe and Green Development Corporation
Safe and Green Development Corporation is a leading real estate
development company. Formed in 2021, it focuses on the development
of sites using purpose-built, prefabricated modules built from both
wood and steel, sourced from one of Safe & Green Holdings
Corp’s factories operated by SG Holdings’ SG Echo subsidiary. More
information about SG DevCo can be found at www.sgdevco.com.
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions
company, operates under core capabilities which include the
development, design, and fabrication of modular structures, meeting
the demand for safe and green solutions across various industries.
The firm supports third-party and in-house developers, architects,
builders, and owners in achieving faster execution, greener
construction, and buildings of higher value. For more information,
visit https://www.safeandgreenholdings.com/ and follow us at
@SGHcorp on Twitter.
Safe Harbor Statement
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. These statements are
only predictions based on current information and expectations and
include statements regarding the intention to enter into a joint
venture with an affiliate of MNO Partners; the proposed cost of the
fully developed Lago Vista property; the estimate for the cost to
develop the property; the anticipation that the JV will secure
construction financing for the project; the proposed initial focus
on luxury condos and the marina; aiming to develop the project to
serve as a model of sustainable, community-focused development amid
SG DevCo’s portfolio, and the belief that the collaboration will
generate significant value for SG DevCo and its stockholders; the
belief that the contribution agreement will unlock value from the
Lago Vista property, and the outlook for both of the Company and SG
DevCo. Actual events or results may differ materially from those
projected in any of such statements due to various factors,
including the risk that SG DevCo and the affiliate of MNO Partners
are unable to successfully negotiate and enter into a joint
venture, the anticipated benefits of the joint venture may not be
realized or may take longer than anticipated to be realized; the
risk that the development of the project will be more costly or
difficult than expected, and the other factors discussed in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2022 and its subsequent filings with the SEC, including
subsequent periodic reports on Forms 10-Q and 8-K. The information
in this release is provided only as of the date of this release,
and we undertake no obligation to update any forward-looking
statements contained in this release on account of new information,
future events, or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231204567311/en/
Investor Relations: Crescendo Communications, LLC (212)
671-1020 sgbx@crescendo-ir.com
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