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
