CALGARY, Jan. 18 /CNW/ - Genesis Land Development Corp. ("Genesis") (TSX:GDC) today provided an update on its ongoing operations.
Genesis currently has 75 lots under conditional contracts to third-party builders. The total value of these contracts is approximately $13.8 million and are conditional upon Genesis completing servicing. The servicing in respect of the 75 lots is expected to be completed in the spring of 2010.
New homes sales:
Genesis currently has 82 homes under contract which are in various stages of construction. The total value of these contracts is approximately $38 million and all homes are expected to be completed and the sales to close in 2010, with an estimated 24 closing in the first quarter, 51 in the second quarter and 7 thereafter.
As previously announced (see the press release dated December 9, 2009), Genesis has finalized a sale agreement for +/-147 acres of fully approved lands in North Calgary for $35 million. The sale transaction is subject to completion of a subdivision plan of the lands and providing a single certificate of title to the lands to the purchaser on the proposed closing date of April 30, 2010 (the "Closing Date"). The purchaser has provided a deposit of $10 million to be held in trust and releasable to Genesis on the Closing Date. The remaining $25 million is due September 30, 2010. Genesis continues to work towards obtaining a single title for these lands and expects to close the transaction and recognize revenue for this sale in the second quarter of 2010.
Genesis Land Development Corp. 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 estimated completion date of the servicing for the 75 conditional lot sales; the estimate of completion and closing of the new home sales; the anticipated closing date for the $35 million land sale; the number of dwelling sites that Genesis will actually develop and sell. 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. 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. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. 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: firstname.lastname@example.org, Internet: www.genesisland.com