CALGARY, March 3, 2014 /CNW/ - Genesis Land Development Corp. (TSX: GDC)
(the "Corporation" or "Genesis") is pleased to report that it has
closed the sale of a 121.91 acre industrial site (the "Acheson site")
located in Parkland County, west of Edmonton, Alberta, for $14.0
million. As previously announced, the sale of the Acheson site is in
keeping with the strategic planning process and the Corporation's
strategy of disposing of a number of non-core holdings. The Acheson
site is a non-core asset of Genesis because of its location outside of
the Calgary Metropolitan Area ("CMA") and its industrial zoning.
The net proceeds from the sale will be used to retire approximately $6.5
million of related property debt, with the remainder to be used for
general working capital purposes. The sale is expected to increase net
operating cash flow by 30 cents per share on a fully diluted basis,
with an expected impact on net income of $197,000.
"We view this disposition as a significant transitional step towards our
focus on our land development and residential homebuilding business in
the CMA," said Bruce Rudichuk, President and Chief Executive Officer.
"In late 2013, the board of directors and management worked on a
strategic direction for the Corporation, one aspect of which was to
dispose of non-core assets in order to monetize their value and
redeploy capital. With the completion of this sale, Genesis now has
98% of its real estate assets (by market value) in the CMA."
Cautionary Statement Regarding Forward-Looking Information
This news release contains 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,
operations and financial performance and condition of Genesis.
Forward-looking statements include, but are not limited to, statements
with respect to the announced sale of the Acheson site and use of
proceeds and the effect on net operating cash flow and net income.
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
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, general economic conditions; 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; interest rates; availability of equity and debt
financing; the impact of newly-adopted accounting principles on
Genesis' accounting policies and on period-to-period comparisons of
financial results; economic conditions in Western Canada; 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 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 release and, except
as require d 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.
About Genesis
Genesis is one of Calgary's leading land development and homebuilding
companies, strategically focused on maximizing value through the
integration of its land and homebuilding operations. Genesis creates
communities throughout the Calgary Metropolitan Area ("CMA") by
acquiring and developing large land positions and selling the resulting
serviced land and residential lots. The Corporation's award-winning
homebuilding division is an active builder in its communities and in
other leading developments throughout the CMA. Genesis owns a large
portfolio of entitled residential and commercial land, which is
exceptionally well positioned to benefit from the continued robust
growth in the Alberta and Calgary economy.
SOURCE Genesis Land Development Corp.
