Safe and Green Development Corporation Executes New Non-binding Letter of Intent to Sell Lago Vista Site for $11.5 Million
02 October 2023 - 11:30PM
Business Wire
LOI includes joint venture with premier real
estate development firm to co-develop Lago Vista site and utilize
SG Echo’s modular units
Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe &
Green Holdings” or the “Company”), a leading developer, designer,
and fabricator of modular structures for residential, commercial,
and point-of-care medicine, today announced that a subsidiary of
its real estate development subsidiary, Safe and Green Development
Corporation (NASDAQ: SGD)(“SG DevCo”), has entered into a new
non-binding letter of intent (“LOI”) to sell its Lago Vista site
for $11.5 million, the proceeds of which will be invested as equity
in a new joint venture with a premier real estate development firm.
The two companies plan to co-develop the site using SG Echo’s
modular units. The Lago Vista property was initially acquired by
the Company in 2021 for $3.5 million.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231002362326/en/
SAFE AND GREEN DEVELOPMENT CORPORATION
EXECUTES NEW NON-BINDING LETTER OF INTENT TO SELL LAGO VISTA SITE
FOR $11.5 MILLION (Photo: Business Wire)
“We are extremely pleased with the terms of this new LOI for the
sale of our Lago Vista site,” said David Villareal, President &
CEO of Safe and Development Corporation. “As we have stated in the
past, we believe there is tremendous potential in the Lago Vista
property. The LOI contemplates an $11.5 million purchase price;
however, we have elected to receive payment as equity in a joint
venture to be formed with one of the region’s leading real estate
development firms, who will be responsible for funding development
of the site. Together, the two companies will be responsible for
developing the land, and it is expected that SG Echo will supply
the modular units. In this way, we anticipate that Safe & Green
Holdings will generate revenue from its manufacturing services,
while both Safe & Green Holdings and SG DevCo will benefit from
the anticipated appreciation of the property. This site, once
developed, may include a hotel, luxury condos, and even a marina.
Overall, we believe that the planned sale and joint venture
represents the best possible outcome for both Safe & Green
Holdings and SG DevCo, as well as the respective shareholders of
both companies, showcasing our proficiency in optimizing and
capitalizing on our strong asset base and manufacturing
capabilities.”
The LOI is non-binding and subject to a number of conditions,
including execution of a final purchase and sale agreement and
establishment of the joint venture. After execution of a final
purchase and sale agreement, the buyer will have an initial 150 day
feasibility period, which may be extended, to conduct surveys,
assessments and other tests, during which the buyer can terminate
the purchase and sale agreement in its sole discretion.
About Safe & Green Holdings
Corp.
Safe & Green Holdings Corp., a leading modular solutions
company, operates under core capabilities which include the
development, design, and fabrication of modular structures, meeting
the demand for safe and green solutions across various industries.
The firm supports third-party and in-house developers, architects,
builders, and owners in achieving faster execution, greener
construction, and buildings of higher value. For more information,
visit https://www.safeandgreenholdings.com/ and follow us at
@SGHcorp on Twitter.
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 SG Holdings’ factories operated
by SG Holdings’ SG Echo subsidiary. More information about SG DevCo
can be found at www.sgdevco.com.
Safe Harbor Statement
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. These forward-looking
statements are based upon current estimates and assumptions and
include statements regarding the Company’s plans to sell its Lago
Vista site for $11.5 million and invest the proceeds as equity in a
new joint venture with a premier real estate development firm ;
co-developing the site using SG Echo’s modular units; the
tremendous potential in the Lago Vista property; formation of the
joint venture who will be responsible for funding development of
the site; generating revenue from the Company’s manufacturing
services; benefitting from anticipated appreciation of the
property; the site including a possible hotel, luxury condos, and
marina; the sale and joint venture representing the best possible
outcome for both the Company and its shareholders; the sale
showcasing the Company’s proficiency in optimizing and capitalizing
on its strong asset base and manufacturing capabilities; and
executing a final purchase and sale agreement and establishing the
joint venture. While the Company believes these forward-looking
statements are reasonable, undue reliance should not be placed on
any such forward-looking statements, which are based on information
available to us on the date of this release. These forward-looking
statements are subject to various risks and uncertainties, many of
which are difficult to predict that could cause actual results to
differ materially from current expectations and assumptions from
those set forth or implied by any forward-looking statements.
Important factors that could cause actual results to differ
materially from current expectations include but are not limited to
the Company’s ability to execute the purchase and sale agreement
and to consummate the sale of the Lago Vista property as planned;
the Company’s ability to co-develop the site using SG Echo’s
modular units; the Company’s ability to generate revenue from its
manufacturing services and benefit from the appreciation of the
property; the Company’s ability to co-develop the site with a
hotel, luxury condos, and marina; the Company’s ability to showcase
its proficiency in optimizing and capitalizing on its strong asset
base and manufacturing capabilities; the Company’s ability to
finalize a final purchase and sale agreement and establish the
joint venture; and the other factors discussed in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022,
and its subsequent filings with the SEC, including subsequent
periodic reports on Forms 10-Q and 8-K. The information in this
release is provided only as of the date of this release, and we
undertake no obligation to update any forward-looking statements
contained in this release on account of new information, future
events, or otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231002362326/en/
Investor Relations: Crescendo Communications, LLC
212-671-1020 SGBX@crescendo-ir.com
Safe and Green Development (NASDAQ:SGD)
Historical Stock Chart
From Apr 2024 to May 2024
Safe and Green Development (NASDAQ:SGD)
Historical Stock Chart
From May 2023 to May 2024