Consolidated-Tomoka Land Co. (NYSE MKT:CTO) (the “Company”) today
announced the sale of 14.98 acres of land located on the east side of
Interstate 95 near the northeast corner of the intersection of LPGA
Boulevard and Williamson Boulevard. The land was sold to an affiliate of
Integra Land Company, for a sales price of approximately $2.4 million,
or approximately $160,000 per acre. Construction of an approximately
260-unit multi-family development is expected to commence on the site in
the first quarter of 2016. The estimated gain from the transaction is
approximately $2.3 million or approximately $0.24 per share after tax.
With the closing of this transaction, the Company currently has six
executed purchase and sale agreements with six different buyers, which
in the aggregate represent the sale of approximately 1,800 acres, or
approximately 17% of our land holdings, with anticipated sales proceeds
of approximately $66 million. The purchase and sale agreement with North
American Development Group (“NADG”) was recently amended (the “Amended
Agreement”) to provide NADG with the ability to acquire portions of the
acreage under contract in multiple, separate, transactions (the “Option
Parcels”) through 2018 (the “Option Period”). The Option Period only
applies if NADG closes on the first parcel of approximately 37 acres
before year end for approximately $5.2 million (the “Initial Closing”).
The Option Parcels represent approximately 86 acres and total potential
proceeds of $22.2 million. Pursuant to the Amended Agreement, NADG can
close on any and all of the Option Parcels at any time during the Option
Period with the first of the Option Parcels contemplated to close in the
first half of 2016, should certain conditions be met. The Amended
Agreement also establishes price escalations that would be applied to
any of the Option Parcels that are acquired after January 2017 and an
additional price escalation that would be applied to any Option Parcels
acquired in 2018. Lastly, the Amended Agreement adjusted the provisions
related to NADG’s payment to the Company for their share of the
infrastructure costs for the Tomoka Town Center whereby the pro-rata
share of such costs attributable to any parcel acquired by NADG prior to
completion of the infrastructure work would be paid to the Company upon
completion of such work, and thereafter subsequently upon any closing of
an Option Parcel.
John P. Albright, President and Chief Executive Officer of the Company
stated, “We are pleased to complete this transaction, particularly given
the expected impact that the development of high quality multi-family
residential units will have on the local economy and our surrounding
land holdings.” Mr. Albright further stated, “We are also pleased to
have amended the agreement with NADG to enable NADG to close on the
first phase of the Tomoka Town Center project and commence their
entitlement and development activities to align with the Tanger Factory
Outlet Center project development timeline.”
Mark E. Patten, Senior Vice President and Chief Financial Officer
stated, “With the closing of this transaction we have achieved nearly
$13 million in land sales year-to-date, exceeding the low end of our
updated 2015 guidance of $10 million.” Mr. Patten also noted, “The
proceeds from the sale to Integra will be utilized in the tax-deferred
exchange, pursuant to Section 1031, associated with the July 2015
purchase of the 245 Riverside property in Jacksonville, Florida,
continuing the strategy we have consistently deployed 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 1.7 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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