Company to contribute Lago Vista property in exchange for membership interest in the proposed joint venture valued at $11.5 million
MIAMI, Fla., Dec. 04, 2023 (GLOBE NEWSWIRE) -- Safe and Green Development Corporation (NASDAQ: SGD) (“SG Devco” or the “Company”) is pleased to announce that it has agreed to enter into a contribution agreement with an affiliate of MNO Partners to form a joint venture (the “JV”) to develop the Lago Vista property. MNO Partners is a community-centric real estate development firm that sponsors vibrant, healthy, and active places to live in the Austin-San Antonio corridor. The cost to fully develop the property is estimated to be approximately $80 million dollars which includes the development of the project from conception to completion.
The Lago Vista property was originally purchased by SG Devco’s subsidiary for $3.5 million in 2021. Pursuant to the terms of a Contribution Agreement, SG Devco’s subsidiary will contribute the property to the JV and receive as consideration for the property contribution a membership interest in the JV valued at $11.5 million. MNO Partners will lead the development process and, after the completion of the feasibility period, will be required to submit permits for the first phase of the project within 11 months from the execution of the Contribution Agreement. It is anticipated that that the JV will secure construction financing, which is a condition to the closing of the JV. The primary focus during the early stages of design include luxury condos and the marina.
David Villarreal, President & CEO of Safe and Green Development Corporation stated, “We are excited about this partnership as we're making progress and aiming to develop the project to serve as a model of sustainable, community-focused development amid our portfolio. Our JV partner will be contributing financial resources to the development of this project. Their financial commitment to the project strengthens our joint capacity to execute successfully and deliver on the project. The initial estimate for the total project cost is approximately $80M. We believe this collaboration will generate significant value for the company and its stockholders.”
Lago Vista Property
About Safe and Green Development Corporation
Safe and Green Development Corporation is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel, sourced from one of Safe & Green Holdings Corp’s factories operated by SG Holdings’ SG Echo subsidiary. More information about SG DevCo can be found at www.sgdevco.com.
Safe Harbor Statement
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements are only predictions based on current information and expectations and include statements regarding the intention to enter into a joint venture with an affiliate of MNO Partners; the proposed cost of the fully developed Lago Vista property; the estimate for the cost to develop the property; the anticipation that the JV will secure construction financing for the project; the proposed initial focus on luxury condos and the marina; aiming to develop the project to serve as a model of sustainable, community-focused development amid the Company’s portfolio and the belief that the collaboration will generate significant value for the company and its stockholders. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risk that the Company and the affiliate of MNO Partners are unable to successfully negotiate and enter into a joint venture, the anticipated benefits of the joint venture may not be realized or may take longer than anticipated to be realized; the risk that the development of the project will be more costly or difficult than expected and other factors discussed in the Company’s Form 10 registration statement and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Safe and Green Development Corporation undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
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