Safe and Green Development Corporation Provides Update On Lago Vista Property with $11.5 Million Contribution Agreement

Rhea-AI Summary

Safe and Green Development Corporation (SG Devco) (NASDAQ: SGD) has announced the commencement of development activities for the Lago Vista project. MNO Partners has deposited earnest money and begun conceptual design, construction pricing, and market studies. The property, originally purchased for $3.5 million, will be contributed to a joint venture with MNO Partners in exchange for a membership interest valued at $11.5 million. MNO Partners will lead the development process, with the JV expected to secure construction financing within 11 months.

MIAMI, Fla, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Safe and Green Development Corporation (NASDAQ: SGD) (“SG Devco” or the “Company”) is pleased to announce that the development activities are underway as MNO deposited the earnest money with the title company as per the terms of the contribution agreement and began conceptual design, construction pricing and market studies for the project.

David Villarreal, President & CEO of Safe and Green Development Corporation stated, “This is truly an exciting time for us as we continue to move forward according to our initial timeframes and schedules in the development process of Lago Vista. We anticipate that Lago Vista will become a premier development. We are now looking forward to the next steps as we conclude 2023 with some major milestones being accomplished.”

The Lago Vista property was originally purchased by SG Devco’s subsidiary for $3.5 million in 2021.  Pursuant to the terms of a previously disclosed contribution agreement, SG Devco’s subsidiary will contribute the property to a to be formed joint venture (JV) with an affiliate of MNO Partners and receive as consideration for the property contribution a membership interest in the JV valued at $11.5 million. MNO Partners will lead the development process and, after the completion of a feasibility period, will be required to submit permits for the first phase of the project within 11 months from the execution of the contribution agreement. It is anticipated that that the JV will secure construction financing, which is a condition to the closing of the JV.

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 Safe & Green Holdings Corp’s factories operated by SG Holdings’ SG Echo subsidiary. More information about SG DevCo can be found at www.sgdevco.com.

Safe Harbor Statement
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements are only predictions based on current information and expectations and include statements regarding Lago Vista being a premier development, the intention to enter into a joint venture with an affiliate of MNO Partners, MNO Partners leading the development process and the anticipation that the JV will secure construction financing for the project. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risk that the Company and the affiliate of MNO Partners are unable to successfully negotiate and enter a joint venture and other factors discussed in the Company’s Form 10 registration statement 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 Safe and Green Development Corporation 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

FAQ

What is the company name and ticker symbol for the press release?

The company is Safe and Green Development Corporation (SG Devco) and the ticker symbol is NASDAQ: SGD.

What is the announcement in the press release about?

The press release announces the commencement of development activities for the Lago Vista project.

Who has deposited earnest money and begun design and studies for the project?

MNO Partners has deposited earnest money and begun conceptual design, construction pricing, and market studies for the project.

What was the original purchase price of the Lago Vista property?

The Lago Vista property was originally purchased for $3.5 million in 2021.

What will SG Devco's subsidiary receive in exchange for contributing the property to the joint venture?

SG Devco's subsidiary will receive a membership interest in the joint venture valued at $11.5 million in exchange for the property contribution.

Who will lead the development process for the joint venture?

MNO Partners will lead the development process for the joint venture.

What is the expected timeline for securing construction financing for the JV?

The JV is expected to secure construction financing within 11 months from the execution of the contribution agreement.