Safe and Green Development Corporation Inks Preliminary Purchase Commitment up to $2.8M for South Texas Project

Rhea-AI Summary

Safe and Green Development (NASDAQ: SGD) has accepted a preliminary binding purchase commitment from Trio, acting as Program Administrator for Choctaw American Insurance, Inc., for its South Texas development project. The commitment includes:

• Sale of the first 5 homes, expected to generate approximately $1,000,000 in revenue
• Potential purchase of up to 14 homes, generating sales of approximately $2,800,000
• Trio to purchase a maximum of 40% of lots within a subdivision

The agreement is subject to individual Purchase and Sale Agreements and identification of Trio-approved occupants. Closings will occur within 14 days of homes being ready for occupancy. This commitment signifies strong demand for single-family housing in the region and marks SG Devco's first pre-sales in company history.

Positive

• Preliminary binding purchase commitment for up to 14 homes, potentially generating $2.8 million in sales
• First 5 homes expected to generate approximately $1 million in revenue
• Marks the company's first pre-sales in its history
• Indicates strong demand for single-family housing in South Texas
• Additional go-forward commitment of up to 250+ residential development lots

Negative

• None.

MIAMI, Oct. 9, 2024 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SG Devco" or the "Company") a leading real estate development company focused on sustainable and eco-friendly projects, is pleased to announce that it has accepted a preliminary binding purchase commitment from Trio, as Program Administrator for Choctaw American Insurance, Inc. ("Choctaw"), for its development project in South Texas.

The sale of the first 5 homes, referenced in the commitment, is expected to generate approximately $1,000,000 dollars in revenue for the Company. The purchase commitment from Trio allows for a purchase of up to 14 homes within this planned development generating sales of approximately $2,800,000. The preliminary purchase commitment sets forth Trio's agreement on behalf of Choctaw to purchase homes in the Company's South Texas development project, with exact locations and pricing terms to be confirmed. Trio shall purchase a maximum of 40% of the lots within a subdivision. The commitment stipulates that each home sale shall be subject to the execution of individual Purchase and Sale Agreements as well as the identification of a Trio approved occupant. The commitment also stipulates that each closing will occur within 14 days of the home being deemed ready for occupancy.

SG Devco CEO, David Villarreal, commented, "We are pleased to accept this preliminary purchase commitment from Trio, which has over the course of 20 years helped to provide more affordable options to Americans to access home ownership. Securing this commitment is a clear indication of the strong demand for single family housing in the region & marks the first pre-sales in the Company's history. This purchase commitment not only underscores the demand for quality housing in South Texas but also solidifies SG Devco's presence in the region with an additional go-forward commitment of up to 250+ residential development lots. With the pre-sale of the first five homes underway, we are excited to continue developing the remaining lots and delivering on our vision for the community. This milestone marks a significant step forward in our long-term growth strategy."

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 plans to sell homes in the Company's South Texas development project to Choctaw, the sale of the first 5 homes generating approximately $1,000,000 dollars in revenue for the Company, the planned development generating sales of approximately $2,800,000, solidifying SG Devco's presence in the region with an additional go-forward commitment of up to 250+ residential development lots, continuing to develop the remaining lots and delivering on the Company's vision for the community 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 construct, complete and sell to Trio, on behalf of Choctaw, homes in its South Texas development project as planned, 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

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SOURCE Safe and Green Development Corporation

FAQ

What is the value of the purchase commitment Safe and Green Development (SGD) received for its South Texas project?

Safe and Green Development (SGD) received a preliminary binding purchase commitment for up to 14 homes, potentially generating approximately $2.8 million in sales for its South Texas project.

How many homes are included in the initial sale for SGD's South Texas project?

The initial sale includes the first 5 homes, which are expected to generate approximately $1 million in revenue for Safe and Green Development (SGD).

Who made the purchase commitment to Safe and Green Development (SGD) for the South Texas project?

The purchase commitment was made by Trio, acting as Program Administrator for Choctaw American Insurance, Inc., to Safe and Green Development (SGD) for its South Texas development project.

What is the maximum percentage of lots Trio can purchase in a subdivision from SGD's South Texas project?

According to the commitment, Trio can purchase a maximum of 40% of the lots within a subdivision in Safe and Green Development 's (SGD) South Texas development project.