TSE Stock Symbol: GDC
CALGARY, Dec. 9 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Corporation") is pleased to announce that it has finalized the sales 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 closing date of April 10, 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 expects to recognize revenue for this sale in Q2-2010.
Financings of $43.5 million
- On November 26, 2009, Genesis secured $28 million against
+/-307 acres of fully approved lands in NW Calgary. Financing terms
require Genesis to pay down $10,000,000 of the loan by April 30,
2010, with the remainder due by November 26, 2010. Interest on this
financing is 12.25% per annum. The $35 million sale above will be
used to retire this debt in 2010. Proceeds from this financing will
be used to pay down other debt and accounts payable.
- Genesis has secured an additional $15.5 million of financing against
+/- 164 acres of fully approved lands in NE Calgary (Saddleton
Lands). This financing at 8% with a deferred participating interest
of 12% is structured to subordinate to future service financing
anticipated in April 2010. Retirement of this loan is tied to the
sales of lots in the Saddleton project and is expected to be fully
retired by mid 2011. Proceeds from this financing will be used to
retire present debt and fill the need for present and future working
The combination of these two financings will greatly strengthen Genesis financial position in the immediate and midterm as the Company continues to reduce its debt and strengthen its balance sheet.
Appointment of COO
The Company is also pleased to announce of appointment of Mr. Jeff Blair to the position of Chief Operating Officer. Mr. Blair has been with Genesis for over 10 years, most recently in the position of Manager of Acquisitions and Planning. Mr. Blair is a member of The Canadian Institute of Planners (MCIP) and holds a certificate in Environmental Management and a degree in Economics. During his career in planning and development he has worked with the City of Calgary Transportation Planning Department and with the City of Airdrie in the areas of Land Use, Subdivision and Parks Planning. In his time with Genesis Mr. Blair has been instrumental in working with approving authorities and industry partners in obtaining the approval for and advancing the implementation of the companies land development projects.
Genesis Land Development Corp. is a Calgary based land development company with an 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 14,000 residential lots and over 300 acres of commercial/industrial lands are located in the Calgary metropolitan area.
Certain statements in this news release could constitute forward-looking statements. The Corporation's line of business involves risk, uncertainties and other factors which may cause actual results, performance or achievements of Genesis to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include the number of dwelling sites that Genesis will actually develop and sell.
SOURCE Genesis Land Development Corp.
For further information: For further information: Gobi Singh, C.E.O., Genesis Land Development Corp., Tel: (403) 265-8079, Toll Free: 1-800-341-7211, Fax: (403) 266-0746, E-Mail: firstname.lastname@example.org, Internet: www.genesisland.com