Safe and Green Development Corporation Announces Entry into Contribution Agreement to Form a Joint Venture to Develop the Lago Vista Property
04 Dezembro 2023 - 12:00PM
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.
For investor relations and media inquiries, please
contact: Barwicki Investor Relations Andrew@Barwicki.com
516-662-9461
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