Safe and Green Development Corporation to contribute Lago Vista property in exchange for membership interest in the proposed joint venture valued at $11.5 million
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 its subsidiary, Safe and Green Development Corporation (“SG DevCo”), has agreed to enter into a contribution agreement with an affiliate of MNO Partners to form a joint venture (the “JV”) to develop the Lago Vista property. MNO Partners is a community-centric real estate development firm that sponsors vibrant, healthy, and active places to live in the Austin-San Antonio corridor. The cost to fully develop the property is estimated to be approximately $80 million dollars, which includes the development of the project from conception to completion.
The Lago Vista property was originally purchased by SG DevCo’s subsidiary for $3.5 million in 2021. Pursuant to the terms of a Contribution Agreement, SG DevCo’s subsidiary will contribute the property to the JV 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 the 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 the JV will secure construction financing, which is a condition to the closing of the JV. The primary focus during the early stages of design include luxury condos and the marina.
David Villarreal, President & CEO of Safe and Green Development Corporation, stated, “We are excited about this partnership as we're making progress and aiming to develop the project to serve as a model of sustainable, community-focused development amid our portfolio. Our JV partner will be contributing financial resources to the development of this project. Their financial commitment to the project strengthens our joint capacity to execute successfully and deliver on the project. The initial estimate for the total project cost is approximately $80 million. We believe this collaboration will generate significant value for SG DevCo and its stockholders.”
Paul Galvin, Chairperson and CEO of Safe & Green Holdings, added, “This agreement is the culmination of tremendous efforts on the part of both the SG DevCo and Safe & Green Holdings teams. Importantly, we believe this agreement will unlock value from the Lago Vista property, and is further validation of our strategic decision to spin off SG DevCo earlier this year. We could not be more excited about the outlook for both of our respective companies.”
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.
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.
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 statements are only predictions based on current information and expectations and include statements regarding the intention to enter into a joint venture with an affiliate of MNO Partners; the proposed cost of the fully developed Lago Vista property; the estimate for the cost to develop the property; the anticipation that the JV will secure construction financing for the project; the proposed initial focus on luxury condos and the marina; aiming to develop the project to serve as a model of sustainable, community-focused development amid SG DevCo’s portfolio, and the belief that the collaboration will generate significant value for SG DevCo and its stockholders; the belief that the contribution agreement will unlock value from the Lago Vista property, and the outlook for both of the Company and SG DevCo. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risk that SG DevCo and the affiliate of MNO Partners are unable to successfully negotiate and enter into a joint venture, the anticipated benefits of the joint venture may not be realized or may take longer than anticipated to be realized; the risk that the development of the project will be more costly or difficult than expected, 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.
Crescendo Communications, LLC