CALGARY, Alberta – (BUSINESS WIRE) – August 3, 2021–
Westphalian Development Corporation (the ” society “) today announced an update of the overall development plan and refinancing efforts to date. Launched in March 2012, the Company acquired for development the 310-acre Westphalia property (the” Goods or the ” Project ”) Located in Prince George County, Maryland, United States.
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Westphalia Master Plan: Phase 1 consists of retail, townhouse, multi-family and single-family rental homes. Phase 2 includes residential, industrial and other commercial uses. Phase 3 includes industrial commercial uses, townhouses and senior residences. Phase 1A was sold to a third-party developer about 18 months ago. (Graphic: Business Wire)
LAND SALES TO DATE – US $ 46.6 MILLION
The project consists of 4 phases. Construction on Phase 1 of the project began in 2014. Between 2015 and 2020, the development delivered 346 residential lots to three home builders (Ryan Homes (NVR), Mid-Atlantic Builders and Haverford Homes) and capitalized on this. success with the sale of 58 acres to Galaxy NC, LLC in January 2020 for the development of over 600 residential units. Sales of Phase 1 and Phase 1A land generated total revenue of $ 46,605,162.
LAND UNDER CONTRACT
US $ 49.55 million of purchase and sale contracts were signed as follows:
January 2021 – Total of $ 27.05 million in purchase and sale contracts signed with a large industrial builder, to purchase the 26.72 acres of industrial land in phase 2 at $ 10.25 million and the approximately 25 acres of land industrial phase 3 at $ 16.8 million, subject to the satisfaction of certain conditions in the legal agreement.
Beginning of July 2021 – Signature of a purchase and sale agreement with a major national home builder on the remaining residential land from phases 1 and 2 at $ 22.5 million, subject to the satisfaction of certain contractual conditions. The purchaser must submit their notice of compliance (waiver of conditions) for certain due diligence items within approximately 60 days.
Residual land: There are three additional sites in which a vertical strategy is pursued to work with national or regional builders of retail businesses and retirement homes. The material aspects of this strategy are expected to be in place within the next 60-90 days. Walton is evaluating options for consultants to engage for this strategy and is seeking partners to build and lease the two commercial sites (~ 5 acres and ~ 14 acres, respectively) and the Senior Living site (~ 13 acres).
“The vertical strategy for Westphalia is something we have been discussing for over 2 years,” said Bill Doherty, CEO of Walton Group of Companies. “The timing seems opportune to us given the activity on the Westphalian master plan. We very actively explore and seek out leading regional and / or national retail builders, senior housing builders and builders for lease to partner with on the construction and lease of our three locations. remaining.
Walton, through his broker, researched and engaged with a potential lead lender for the project. The potential principal lender continues to conduct its normal due diligence and documentation process, which must be completed prior to any closing. Management has also negotiated subordinate financing terms with its existing lender, WWMN, LLC (“WWMN”), a portion of which is expected to be funded concurrently with the new senior loan. Management continues to work on the documentation and due diligence process for the two new loans, which are now expected to be completed by August 31, 2021. An extension agreement has been signed with the existing lead lender, WWMN, to extend the date. of the Company’s existing senior debt until August 31, 2021.
DEVELOPMENT PROGRESS (as of July 15, 2021)
DEVELOPMENT OF PHASE 1: 346 townhouses and Westphalia Green Park is fully completed
PHASE 1A DEVELOPMENT AND ROAD
The land for phase 1A is under construction. Westphalia sold these lands to Galaxy NC, LLC in January 2020 for the development of approximately 655 residential units. It will be a residential community as part of the project’s larger master plan.
Road construction within the development is progressing at a steady pace. Construction of the Presidential Parkway East was completed in November 2020, opening access to residential Phase 1A.
Phase 2 consists of land intended for residential and industrial purposes. The industrial part is currently under contract with an industrial developer with a closing target in the 4th quarter of 2022.
DEVELOPMENT OF THE ROAD AND PHASE 3
The remainder of Presidential Parkway West is expected to be completed by the second quarter of 2022. These infrastructure improvements are essential to open access to future phases of development. Phase 3 includes land intended for commercial and industrial purposes. Rough leveling of the industrial part is underway and this property is currently under contract for closure scheduled for Q1 2023.
The company is managed by Walton Global Investments Ltd. and project development is managed by Walton Development & Management (USA), Inc., both members of Walton.
Walton is a leading private global real estate investment, land asset management and administration group that has focused for more than 40 years on land strategically located in key growth corridors. Walton manages and administers US $ 3.8 billion of real estate assets in North America on behalf of its investors and business partners. Walton has over 106,000 acres of land owned, managed and administered in the United States and Canada. Key Walton entities include Walton Global Holdings, Walton International Group, and Walton Development and Management. For more information, visit Walton.com.
This press release, required by Canadian law, does not constitute an offer of securities and is not intended for distribution or broadcast outside of Canada. This press release contains forward-looking information, and actual future results may differ from what is disclosed in this press release. Forward-looking information is based on the Company’s current expectations, estimates and projections at the time the statements are made. They involve a number of known and unknown risks and uncertainties which would cause actual results or events to differ materially from those currently expected. The risks, uncertainties and other factors that could cause the actual results and performance of the Company in future periods to differ materially from the forward-looking information contained in this press release include, among others, the development of downtown Westphalia , general economic and market factors, including interest rates, a decline in the real estate market, changes in government policies and regulations or in tax laws, changes in municipal planning strategies and whether certain approvals from development are obtained and changes in the Canadian / US dollar exchange rate, in addition to the factors discussed or mentioned in documents filed with Canadian securities regulators and available online at www.sedar.com.
Unless otherwise indicated, all amounts are in Canadian dollars and are based on the unaudited condensed interim consolidated financial statements for the quarter ended December 31, 2020 and accompanying notes, prepared in accordance with International Financial Reporting Standards.
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KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: COMMERCIAL AND REAL ESTATE BUILDING CONSTRUCTION AND PROPERTY PROFESSIONAL SERVICES FINANCE
SOURCE: Westphalia Development Corporation
Copyright Business Wire 2021.
PUB: 08/03/2021 14:15 / DISC: 08/03/2021 14:16