TSE Stock Symbol: GDC
CALGARY, May 31 /CNW/ - Genesis Land Development Corp. ("Genesis" or "the Corporation") (TSX:GDC) is pleased to announce that as of today, Genesis has either closed, or has contractual sales in place for 2010 totaling approximately $142.9 million. Gobi Singh, President and CEO of the Corporation commented, "with $142.9 million in contracted sales to date, Genesis is poised to surpass 2007's historical high of $99 million of sales". The contracted sales are as follows:
Lot Sales: $42.8 million
New Home Sales: $58.8 million
Land Sales: $41.3 million
Lot sales $42.8 million:
Type of Sale Number of Lots Approximate Value
Conditional 190 $36.5 million
Unconditional (includes Q1-2010
results) 30 $6.3 million
220 $42.8 million
Genesis currently has 190 lots under conditional contracts to third-party builders. Of these conditionally sold lots, 75 lots are in NW Calgary and 100 lots are in NE Calgary; all are conditional upon Genesis completing servicing. Servicing on both projects is expected to be completed late in Q3 of 2010. 15 lots are in Airdrie, and are contracted to close within 2010.
New homes sales - $58.8 million
Genesis now has 129 homes under contract which have either closed or are in various stages of construction. The total value of these contracts is approximately $58.8 million and all homes are expected to be completed and the sales to close in 2010.
Land sales - $41.3 million:
As previously announced (see the press release of May 11, 2010), Genesis completed the closing of a sale of +/-147 acres of land in NW Calgary for $35 million. $10 million of the proceeds has been applied to reduce the Corporation's debts, a vendor take back mortgage ("VTB"), due September 30, 2010, was issued for the balance of $25 million. The Management of Genesis intends to apply the proceeds from the VTB to further reduce the Corporation's indebtedness.
On April 30, 2010 Genesis entered into an unconditional agreement with a third party developer to sell a 16 2/3% interest in +/- 150 acres of land in NW Calgary for $6.26 million. Genesis received $3.13 million upon closing of the sale, and a VTB which is due in one year was issued for the balance of the funds. Genesis continues to hold a 50% interest in the lands versus 66 2/3% prior to the sale of the subject lands. At the time of the sale, Genesis also entered into a 50/50 joint venture ("JV") with the third party developer. The other developer will act as operator in the development of the lands and both parties will participate in the project in proportion to their interest in the lands.
Genesis is a Calgary based land development company with an estimated inventory of more than 24,000 future residential building sites (single-family and multi-family) and over 300 acres of commercial/ industrial lands in Western Canada, of which more than an estimated 14,000 residential lots and over 300 acres of commercial/industrial lands are located in the Calgary metropolitan area.
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the total estimate of sales of $142.9 million and whether Genesis will realize all sales within 2010, the estimated completion date of the servicing and closing of the 190 conditional lot sales; the estimate of completion and closing of the new home sales; the anticipated date Genesis will receive the balance of the sale price secured by the VTB's; management's intention to apply the proceeds of sales to reduce the Corporation's indebtedness and the number of dwelling sites that Genesis will actually develop and sell in 2010. Although Genesis believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Genesis. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include, but are not limited to: weather delays affective servicing of lands; changes in general economic, real estate and other conditions; mortgage rate changes; ability of third parties to complete transactions and pay VTB's, adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labor or materials or increases in their costs; ability to develop and market our master-planned communities successfully; confidence levels of consumers; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability of adequate coverage; competitive conditions in the homebuilding industry, including product and pricing pressures; and additional risks, uncertainties, material assumptions and other factors that could affect actual results referred to in our Annual Information Form and other documents available at www.sedar.com. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
SOURCE Genesis Land Development Corp.
For further information: For further information: Gobi Singh, C.E.O., Genesis Land Development Corp., Toll Free: (403) 265-8079, 1-800-341-7211, Fax: (403) 266-0746, E-Mail: email@example.com, Internet: www.genesisland.com