CALGARY, Dec. 15, 2017 /CNW/ - GP LPLP 2007 Inc., as
general partner of Limited Partnership Land Pool (2007) ("LPLP"),
and Genesis Land Development Corp. ("Genesis") (TSX: GDC), as
nominee, are pleased to announce the closing of the sale of 319
acres of undeveloped lands located in the City of Airdrie, Alberta (commonly referred to
as the "Fowler Lands") on December 15,
2017 at the sale price of $41,000,000. These lands were 100%
beneficially owned by LPLP and were sold to an arms-length third
party.
The purchaser paid $20,500,000
(50% of the sale price) in cash on closing and the remaining 50% of
the sale price will be paid in three years (subject to
certain pre-payment privileges), and is secured by an
interest-bearing vendor take back mortgage in the amount of
$20,500,000 (the "VTB").
The net cash proceeds of this sale were used by LPLP as follows
(1) $4,055,000 to repay in full its
credit facility with a third‑party lender, and (2) $15,547,000 to repay in part the loan from
Genesis to LPLP, all in accordance with its loan and related
agreements. LPLP now has approximately $12,134,000 in debt outstanding to Genesis, which
bears interest at the rate of Prime plus 3% and is secured by a
pledge of the VTB.
About Genesis
Genesis Land Development Corp. is a land developer and
residential home builder in the Calgary Metropolitan Area. The
Corporation's common shares are listed on the Toronto Stock
Exchange (TSX: GDC).
Cautionary Statement Regarding Forward Looking
Information
This press release contains certain statements which
constitute forward looking statements or information
("forward-looking statements") within the meaning of applicable
securities legislation. This information includes, but is not
limited to the timing and payment of the remaining 50% of the sale
price. Although Genesis believes that the anticipated future
events, performance or achievements expressed or implied by the
forward‑looking statements are based upon reasonable assumptions
and expectations, the reader should not place undue reliance on
forward‑looking statements because they involve assumptions, known
and unknown risks, uncertainties and other factors many of which
are beyond Genesis' control, which may cause the actual results,
performance or achievements of Genesis to differ materially from
anticipated future results, performance or achievement
expressed or implied by such
forward‑looking statements.
Factors that could cause actual results to differ materially
from those set forth in the forward-looking statements include, but
are not limited to: the impact or unanticipated impact of general
economic conditions in Canada,
the United States and globally;
the impact of contractual arrangements and incurred obligations on
future operations and liquidity; local real estate conditions; the
impacts of real estate development and acquisition activity;
governmental regulations, and other risks and factors described
from time to time in the documents filed by Genesis with securities
regulators in Canada available at
www.sedar.com., including the Genesis' Annual Information Form
under the heading "Risk Factors" and in Genesis' most recent
interim report under the heading "Management's Discussion and
Analysis." Furthermore, the forward-looking statements contained in
this press release are made as of the date of this press release
and, except as required by applicable law, Genesis does not
undertake any obligation to publicly update or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Genesis Land Development Corp.