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Safe and Green Development Corporation Closes Sugar Phase 1 Construction Loan

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Safe and Green Development (NASDAQ: SGD) has secured its first construction loan of $554,222 for the Sugar Phase I project. The loan will be disbursed in draws based on construction progress, with home delivery expected in early Q1 2025. The Joint Venture anticipates generating revenues of approximately $1,000,000 from home sales, with projected net profits of $380,000 after expenses. These financial metrics are expected to be replicated across the remaining units in the 35-unit development.

Safe and Green Development (NASDAQ: SGD) ha ottenuto il suo primo prestito per costruzione di $554.222 per il progetto Sugar Phase I. Il prestito sarà erogato a tranches in base ai progressi della costruzione, con consegna delle abitazioni prevista all'inizio del primo trimestre del 2025. La joint venture prevede di generare ricavi di circa $1.000.000 dalle vendite delle case, con profitti netti previsti di $380.000 dopo le spese. Questi indicatori finanziari dovrebbero essere replicati nelle restanti unità dello sviluppo di 35 unità.

Safe and Green Development (NASDAQ: SGD) ha conseguido su primer préstamo de construcción de $554,222 para el proyecto Sugar Phase I. El préstamo se desembolsará en tramos basados en el progreso de la construcción, con entrega de viviendas prevista para principios del primer trimestre de 2025. La empresa conjunta anticipa generar ingresos de aproximadamente $1,000,000 por ventas de viviendas, con beneficios netos proyectados de $380,000 después de gastos. Se espera que estas métricas financieras se reproduzcan en las unidades restantes del desarrollo de 35 unidades.

세이프 앤 그린 개발(SAFE AND GREEN DEVELOPMENT, NASDAQ: SGD)은 설탕 1단계 프로젝트를 위해 첫 번째 건설 대출 $554,222를 확보했습니다. 대출은 건설 진행 상황에 따라 분할 지급되며, 주택 인도는 2025년 1분기 초로 예상됩니다. 조인트 벤처는 주택 판매로 약 $1,000,000의 수익을 창출할 것으로 예상하며, 비용을 제외한 순이익은 $380,000로 예상됩니다. 이러한 재무 지표는 35개 유닛 개발의 나머지 유닛에서도 반복될 것으로 예상됩니다.

Safe and Green Development (NASDAQ: SGD) a obtenu son premier prêt de construction de 554 222 $ pour le projet Sugar Phase I. Le prêt sera déboursé par tirages en fonction de l'avancement des travaux, la livraison des logements étant prévue pour début du premier trimestre 2025. La joint-venture prévoit de générer des revenus d'environ 1 000 000 $ grâce à la vente de maisons, avec un bénéfice net projeté de 380 000 $ après frais. Ces indicateurs financiers devraient être répétées pour les unités restantes dans le développement de 35 unités.

Safe and Green Development (NASDAQ: SGD) hat sein erstes Baukredit in Höhe von $554.222 für das Projekt Sugar Phase I gesichert. Der Kredit wird in Tranchen entsprechend dem Fortschritt des Baus ausgezahlt, wobei die Übergabe der Wohnungen für Anfang Q1 2025 erwartet wird. Das Joint Venture rechnet mit Einnahmen von etwa $1.000.000 aus dem Verkauf von Wohnungen, mit prognostizierten Nettogewinnen von $380.000 nach Abzug der Ausgaben. Es wird erwartet, dass diese finanziellen Kennzahlen auch für die verbleibenden Einheiten des 35-Einheiten-Entwicklungsprojekts wiederholt werden.

Positive
  • Secured first construction loan of $554,222
  • Expected revenue of $1,000,000 from home sales
  • Projected net profits of $380,000 for Phase I
  • Project on track for early Q1 2025 delivery
  • Potential for similar returns across remaining 35 units
Negative
  • None.

Insights

The secured $554,222 construction loan marks a significant milestone for SGD, enabling the completion of Phase I of the Sugar project. The projected revenue of $1,000,000 and net profit of $380,000 from the initial five homes represents a healthy 38% profit margin. Most notably, with these metrics expected to be replicated across the remaining 30 units, the full development could potentially generate:

  • Total revenue: approximately $7,000,000
  • Total net profit: approximately $2,660,000

The loan structure, utilizing a draw-based system, helps manage risk and ensures capital efficiency. With construction already in progress and delivery scheduled for early Q1 2025, the company demonstrates strong execution capabilities and a clear path to revenue generation.

MIAMI, Nov. 8, 2024 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SG Devco" or the "Company"), a leading real estate development company, closed its first construction loan in Company history on November 7th, 2024.

The Company's Sugar Phase I project is already underway and is on track to deliver the finished homes early in the first quarter of 2025. The loan will accelerate the construction of the homes by providing access to additional working capital and ensure that the homes are delivered on budget and on time.

The total loan amount is approximately $554,222 which will be funded in draws as the homes reach various levels of completion. The Joint Venture expects to be able to generate revenues of approximately $1,000,000 from the sale of the homes and net profits of approximately $380,000 after considering interest expense and other project related expenses. These project level financials for these five homes are expected to be mirrored through the rest of the 35-unit development.

"This Company milestone is representative of the pace at which we are moving with our projects in South Texas," said David Villarreal, CEO of SG Devco. "We look forward to delivering these homes and continuing to develop the Sugar subdivision throughout 2025"

About Safe and Green Development Corporation (SG Devco)

Safe and Green Development Corporation is a 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. The thesis of development is to build strong, innovative and green, single or multifamily projects across all income and asset classes. Additionally, a majority owned subsidiary of SG DevCo, Majestic World Holdings LLC, is a prop-tech company that has created a real estate AI Platform. The Platform aims to decentralize the real estate marketplace, creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment. MyVONIA Innovations LLC, a wholly own subsidiary, is the owner of MyVONIA which is an AI-powered personal assistant designed to help simplify daily tasks and improve productivity for individuals and businesses. MyVONIA aims to assist with managing both personal and professional tasks.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact are or may be deemed to be forward-looking statements. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions and include statements regarding the Sugar Phase I project being on track to deliver the finished homes early in the first quarter of 2025, the loan ensuring that the homes are delivered on budget and on time, the Joint Venture generating revenues of approximately $1,000,000 from the sale of the homes and net profits of approximately $380,000 after considering interest expense and other project related expenses, the project level financials for these five homes being mirrored through the rest of the 35-unit development and continuing to develop the Sugar subdivision throughout 2025 and creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment.

These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to deliver and sell finished homes for the Sugar Phase I project in South Texas as planned, the Company's ability to generate revenues and net profits from the Joint Venture,  the Company's ability to create an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment, the Company's ability to obtain the capital necessary to fund its activities, the Company's ability to monetize its real estate holdings, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com
516-662-9461

Cision View original content:https://www.prnewswire.com/news-releases/safe-and-green-development-corporation-closes-sugar-phase-1-construction-loan-302299766.html

SOURCE Safe and Green Development Corporation

FAQ

What is the total loan amount for SGD's Sugar Phase I construction project?

The total loan amount is approximately $554,222, which will be funded in draws as the homes reach various completion levels.

When will SGD complete the Sugar Phase I homes?

The homes are expected to be delivered early in the first quarter of 2025.

What is the expected revenue and profit for SGD's Sugar Phase I project?

The project is expected to generate approximately $1,000,000 in revenue and $380,000 in net profits after expenses.

How many total units are planned for SGD's Sugar development?

The Sugar development consists of 35 total units, with Phase I being the first portion of the project.

Safe and Green Development Corporation

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