Safe and Green Development Corporation Executes New Non-binding Letter of Intent to Sell Lago Vista Site for $11.5 Million

Rhea-AI Summary

Safe & Green Holdings Corp. subsidiary enters LOI to sell Lago Vista site for $11.5 million and form joint venture with real estate development firm. SG Echo's modular units will be used for site development. Potential revenue from manufacturing services and appreciation of property.

LOI includes joint venture with premier real estate development firm to co-develop Lago Vista site and utilize SG Echo’s modular units

MIAMI--(BUSINESS WIRE)-- 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.

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/

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Source: Safe & Green Holdings Corp.