Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”) today
announced the sale of 38.93 acres of land located on the east side of
Interstate 95, just south of LPGA Boulevard, to an affiliate of Tanger
Factory Outlet Centers, Inc. (NYSE: SKT) (“Tanger”), at a sales price of
$9.7 million, or approximately $249,000 per acre. The Company believes
the transaction will result in a total estimated gain of approximately
of $7.7 million, with an estimated gain of $2.2 million recognized at
closing and the remaining gain of approximately $5.5 million expected to
be recognized as the Company completes certain infrastructure
improvements (the “Infrastructure Work”) at the 230 acre Tomoka Town
Center (the “Town Center”). Pursuant to the agreement with Tanger and
under the existing contracts with an affiliate of Sam’s Club (“Sam’s
Club Buyer”) and with North American Development Group which together
represent the potential sale of the remaining acreage in the Town Center
(the “Potential Town Center Sales”), the Company is responsible for
completion of the Infrastructure Work. The Infrastructure Work is
currently estimated to cost between $12.5 million and $16.0 million and
is expected to be completed over the next ten months. In connection with
the transaction with Tanger, the Company expects to receive
approximately $4.5 million for the portion of the Infrastructure Work
attributable to the Tanger property from the Tomoka Town Center
Community Development District (the “Town Center District”), a special
purpose governmental entity, based upon the achievement of certain
milestones related to the Infrastructure Work and the Tanger project,
and when the Company dedicates the Infrastructure Work to the Town
Center District. The payment of the $4.5 million will be recognized into
revenue when earned. The Company expects to receive payments, in
addition to the sales proceeds from each of the Tanger and Potential
Town Center Sales agreements (the “Incremental Payments”), including
certain fixed annual payments over the next ten years from two of the
buyers which annual amounts are or would be included in the estimated
gains from the transactions. In aggregate, the majority of the
Incremental Payments and the payment received from the Town Center
District are expected to largely offset the cost of the Infrastructure
Work.
There can be no assurances regarding the likelihood or timing of either
of the Potential Town Center Sales being completed or the final terms,
including the acreage subject to the sale, the sales price and other
financial terms.
John P. Albright, President and Chief Executive Officer of the Company
stated, “We are pleased to complete this transaction with Tanger,
particularly given the expected impact that this upscale outlet shopping
center will have on the economy of Volusia County and the City of
Daytona Beach.” Mr. Albright further stated, “The development of this
project will activate the 230 acre Tomoka Town Center, where the balance
of the acreage is currently under contract with North American
Development Group and Sam’s Club.” Mr. Albright also noted, “The
proceeds from the sale will be utilized in a tax-deferred exchange
pursuant to Section 1031 continuing our strategy of converting land into
income producing properties.”
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real
estate company, which owns a portfolio of income investments in
diversified markets in the United States including more than 1.2 million
square feet of income properties, as well as over 10,500 acres of land
in the Daytona Beach 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. Words
such as “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. Although forward-looking statements are
made based upon management’s expectations and beliefs concerning future
developments and their potential effect upon the Company, a number of
factors could cause the Company’s actual results to differ materially
from those set forth in the forward-looking statements. Such factors may
include uncertainties associated with closing land transactions,
including the likelihood, timing, and final transaction terms thereof,
the estimate of the cost of completing infrastructure work affiliated
with certain land transactions and the impact on the total estimated
gain as well as the timing of the recognition of that gain, our ability
to obtain necessary governmental approvals for our land transactions or
to satisfy other closing conditions, as well as the uncertainties and
risk factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2014 and in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2015, each filed with the Securities and
Exchange Commission. 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.
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