Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”) today
announced the sale of approximately 76 acres of land located on the east
side of Interstate 95 at a purchase price of approximately $7.8 million,
or approximately $103,000 per acre, resulting in an estimated gain at
closing of approximately $3.8 million with an additional gain of
approximately $400,000 to be recognized as certain road improvements are
completed over the next six months. As part of the contractual agreement
with the buyer, the Company incurred approximately $2.1 million in costs
to prepare the pad site for vertical construction. In connection with
this transaction the Company received $400,000 from the CEO Business
Alliance, a private economic development organization in Daytona Beach,
as reimbursement for a portion of the pad site costs. In addition, the
Company expects to receive payments totaling approximately $1.1 million
from Volusia County, based upon certain milestones being achieved
including when the distribution center receives its certificate of
occupancy and the dates when specified numbers of jobs have been created
at the buyer’s operations. The Company believes the milestones could be
reached in late 2015. Should the milestones be achieved, the estimated
net gain on the sale would total approximately $5.3 million.
Mark E. Patten, Senior Vice President and Chief Financial Officer of the
Company, stated, “We are pleased to complete this transaction with the
buyer, particularly given the expected impact of the projected 630,000
square foot distribution center operation on the economy of Volusia
County and the City of Daytona Beach.” Mr. Patten further stated, “The
proceeds from the sale will be utilized through the Section 1031
tax-deferred exchange process and continue our strategy of investing in
income producing properties.”
John P. Albright, President and Chief Executive Officer of the Company
stated, “We greatly appreciate the support of the State of Florida,
Volusia County, the City of Daytona Beach, and the CEO Business Alliance
through the significant economic incentives they provided to help bring
this transaction to fruition, as well as the efforts of Team Volusia
Economic Development Corporation.”
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real
estate company, which owns a portfolio of income properties and loan
investments in diversified markets in the United States, and over 10,500
acres of land in the Daytona Beach, Florida area. Visit our website at www.ctlc.com.
"SAFE HARBOR"
Certain statements contained in this press release (other than
statements of historical fact) are forward-looking statements. The words
“believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,”
“could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,”
“project,” and similar expressions and variations thereof identify
certain of such forward-looking statements, which speak only as of the
dates on which they were made. Forward-looking statements are made based
upon management’s expectations and beliefs concerning future
developments and their potential effect upon the Company. There can be
no assurance that future developments will be in accordance with
management’s expectations or that the effect of future developments on
the Company will be those anticipated by management.
Copyright Business Wire 2014