Consolidated Tomoka Announces Amendment of Remaining Land Sale Contract with Minto Communities
August 14 2017 - 4:20PM
Business Wire
Consolidated-Tomoka Land Co. (NYSE American:CTO) (the “Company”)
today announced that the Company and Minto Communities (“Minto”)
have agreed to an amendment to the contract for the sale of land to
Minto Communities (the “Amended Minto II Contract”). The Amended
Minto II Contract reduced the acres of land being sold to 1,614
acres (the “Second Parcel”) for a reduced purchase price of $26.5
million, which equates to a price per acre of approximately
$16,400. The reduced acreage reflects the removal of certain acres
the Company determined to retain to benefit certain other of its
land parcels. The reduced price per acre reflects the impact of the
resolution of the EPA matter regarding the wetlands impacts on the
acreage covered by the original contract with Minto which, as a
result, reduced the amount of useable acreage and the efficiency of
the original design of Minto’s development thereby lowering Minto’s
yield of buildable home sites and adversely impacting certain
development costs associated with roadwork and similar design
elements. Minto intends to utilize the Second Parcel for the second
phase of their active adult community Latitude Margaritaville. The
Amended Minto II Contract also accelerated the potential closing
date to no later than December 14, 2018 based upon Minto obtaining
the necessary development approvals and acknowledges that Minto’s
inspection period has concluded. Pursuant to the Amended Minto II
Contract, Minto has committed to spend a minimum of $300,000 for
the purpose of obtaining the aforementioned development
approvals.
The Amended Minto II Contract continued to provide Minto with
the option to utilize financing from the Company to fund a portion
of the purchase price, in the form of a secured mortgage loan (the
“Secured Mortgage Loan”), however, the total financing available
was reduced to 50% of the purchase price. The Secured Mortgage Loan
would have a term of three years, would be effectively secured by
the developable acres of land being acquired by Minto, and would
bear a variable interest rate of 90-day LIBOR plus 6.00%.
As a result of the Amended Minto II Contract, the Company
currently has seven (7) executed purchase and sale agreements with
seven (7) different buyers, which in the aggregate represent the
potential sale of nearly 2,000 acres, or approximately 25% of our
land holdings, with anticipated sales proceeds of approximately $65
million, or approximately $32,000 per acre. Each of the
transactions are in varying stages of due diligence by the various
buyers including, in some instances, having made submissions to the
planning and development departments of the City of Daytona Beach
and other approval and permitting activities with other applicable
governmental authorities. In addition to other customary closing
conditions, most of the transactions are conditioned upon the
receipt of approvals or permits from various governmental
authorities, as well as other matters that are beyond the Company’s
control. If such approvals are not obtained, the prospective buyers
may have the ability to terminate their respective agreements prior
to closing. As a result, there can be no assurances regarding the
likelihood or timing of any of these potential land transactions
being completed or the final terms thereof, including the sales
price.
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 1.9
million square feet of income properties, as well as approximately
8,100 acres of land in the Daytona Beach area. Visit our website at
www.ctlc.com.
We encourage you to review our most recent investor
presentations for the quarter ended June 30, 2017, available on 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 the completion of 1031 exchange
transactions, the modification of terms of certain land sales
agreements, uncertainties associated with obtaining required
governmental permits and satisfying 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, 2016 as
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170814005933/en/
Consolidated-Tomoka Land Co.Mark E. Patten, 386-944-5643Sr. Vice
President & Chief Financial Officermpatten@ctlc.comFacsimile:
386-274-1223
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