Consolidated-Tomoka Announces Closing of Transaction to Sell 70% Interest in New Mitigation Bank Joint Venture for $15.3 Mill...
June 11 2018 - 9:10AM
Consolidated-Tomoka Land Co. (NYSE American:CTO) (the “Company”)
today announced the closing of the sale of a 70% interest in the
entity that holds approximately 2,500 acres of land (the “Land
Transaction”) with the intent of creating a wetland mitigation bank
(the “Tiger Bay Mitigation Bank” or the “Venture”). The sale
of the 70% interest will generate proceeds for the Company of
approximately $15.3 million.
The purchaser of the 70% interest in the Venture is
comprised of certain funds and accounts managed by an investment
advisory subsidiary of BlackRock, Inc. (“BlackRock”). The Company
retained an approximately 30% non-controlling interest in the
Venture and will also continue as manager of the Venture.
The Tiger Bay Mitigation Bank intends to engage in
the creation and sale of both federal and state wetland mitigation
credits. These credits will be created pursuant to the
applicable permits that will be issued to the Venture from the
federal and state regulatory agencies that exercise jurisdiction
over the awarding of such credits, but no assurances can be given
as to the issuance, marketability or value of the credits.
Receipt of the permit from the state regulatory agency
occurred on June 8, 2018. The receipt of the remaining permit and
the awarding of the initial credits to be created is anticipated to
occur prior to the end of the year. Upon satisfaction of
certain conditions, each of which is expected to occur prior to the
end of the third quarter of 2018, the proceeds will be released to
the Company and the Land Transaction will be recognized as a sale
of the 70% interest in the Venture. If such conditions are
not met within 160 days following the closing of the Land
Transaction, BlackRock has a rescission right whereby the
transaction may be canceled and the sales proceeds returned to
BlackRock along with a cancellation fee paid by the Company to
BlackRock and the return of any initial contributions of capital to
the Venture by BlackRock.
In connection with its receipt of the regulatory
permits, the Tiger Bay Mitigation Bank will be required to place
its land into a conservation easement, thus ensuring no future
development will be allowed on this large land area inside the City
of Daytona Beach, FL. The approximately 2,500 acres in the
Tiger Bay Mitigation Bank sits adjacent to the existing 27,395-acre
Tiger Bay State Forest.
The Company anticipates using the proceeds from the
transaction in a 1031 like-kind exchange as part of the previously
announced Aspen acquisition.
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 approximately 2.1 million square feet of income
properties, as well as nearly 5,600 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 which are 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 are intended to identify certain
of such forward-looking statements, which speak only as of the
dates on which they were made, although not all forward-looking
statements contain such words. 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 availability of investment
properties that meet the Company’s investment goals and criteria,
the modification of terms of certain land sales agreements,
uncertainties associated with obtaining required governmental
permits and satisfying other closing conditions for planned
acquisitions and sales, as well as the uncertainties and risk
factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2017 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. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this release.
Contact: Mark E. Patten, Sr. Vice President &
Chief Financial Officer mpatten@ctlc.com Phone: (386)
944-5643Facsimile: (386) 274-1223
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