AURORA, ON, March 28 /CNW/ - MI Developments Inc. (TSX: MIM.A, MIM.B;
NYSE: MIM) ("MID") today announced that it has purchased from subsidiaries of
Magna Entertainment Corp. (TSX: MEC.A; NASDAQ: MECA) ("MEC") a 157 acre
development property in Palm Beach County, Florida adjacent to MEC's Palm
Meadows Training Center, for cash consideration of US$35 million. In addition,
MID granted MEC the right to receive a one-time profit participation payment
in respect of any sale or development of the property equal to 15% of the
marginal net proceeds on such property after MID achieves a 15% internal rate
of return. MID intends to develop the property, either for its own account or
as part of a joint venture arrangement, for residential purposes.
The transaction was approved by the MID Board based in part on a
recommendation from a Special Committee of independent directors of MID
comprised of Messrs. Neil Davis, who acted as Chairman, Philip Fricke and
Manfred Jakszus. The Special Committee engaged Goodmans LLP as its independent
legal advisor. Davies Ward Phillips & Vineberg LLP acted as legal advisor to
MID is a real estate operating company engaged in the ownership,
development, management, leasing and acquisition of industrial and commercial
real estate properties located in North America and Europe. Virtually all of
our income-producing properties are currently under lease to Magna
International Inc. and its subsidiaries. MID also holds a controlling
investment in MEC, North America's number one owner and operator of horse
racetracks, based on revenues, and one of the world's leading suppliers, via
simulcasting, of live racing content to the growing inter-track, off-track and
account wagering markets.
The contents of this press release may contain statements that, to the
extent they are not recitations of historical fact, constitute
"forward-looking statements" within the meaning of applicable securities
legislation, including the United States Securities Act of 1933 and the United
States Securities Exchange Act of 1934. Forward-looking statements may
include, among others, statements regarding the Company's future plans, goals,
strategies, intentions, beliefs, estimates, costs, objectives, economic
performance or expectations, or the assumptions underlying any of the
foregoing. Words such as "may", "would", "could", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "project", "estimate"
and similar expressions are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of future
performance or results and will not necessarily be accurate indications of
whether or the times at or by which such future performance will be achieved.
Undue reliance should not be placed on such statements. Forward-looking
statements are based on information available at the time and/or management's
good faith assumptions and analyses made in light of our perception of
historical trends, current conditions and expected future developments, as
well as other factors we believe are appropriate in the circumstances, and are
subject to known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond the Company's control, that could cause
actual events or results to differ materially from such forward-looking
statements. Important factors that could cause such differences include, but
are not limited to, the risks set forth in the "Risk Factors" section in MID's
Annual Information Form for 2005, filed on SEDAR at www.sedar.com and attached
as Exhibit 1 to MID's Annual Report on Form 40-F for the year ended December
31, 2005. The "Risk Factors" section also contains information about the
material factors or assumptions underlying such forward-looking statements.
Forward-looking statements speak only as of the date the statement was made
and unless otherwise required by applicable securities laws, MID expressly
disclaims any intention and undertakes no obligation to update or revise any
forward-looking statements contained in this press release to reflect
subsequent information, events or circumstances or otherwise.
For further information:
For further information: about this press release, please contact John
Simonetti, MID's Chief Executive Officer, at (905) 726-7619.