Business
Genesis Contracts Sales of $142.9 Million for 2010
Genesis Contracts Sales of $142.9 Million for 2010
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\n May 31, 2010 (Canada NewsWire Group) -- TSE Stock Symbol: GDC\n\n Genesis Land Development Corp. ("Genesis" or "the Corporation") (TSX:GDC) is pleased to announce that as of today, Genesis has either closed, or has contractual sales in place for 2010 totaling approximately $142.9 million. Gobi Singh, President and CEO of the Corporation commented, "with $142.9 million in contracted sales to date, Genesis is poised to surpass 2007's historical high of $99 million of sales". The contracted sales are as follows:\n\n\n >\n\n\nGenesis currently has 190 lots under conditional contracts to third-party builders. Of these conditionally sold lots, 75 lots are in NW Calgary and 100 lots are in NE Calgary; all are conditional upon Genesis completing servicing. Servicing on both projects is expected to be completed late in Q3 of 2010. 15 lots are in Airdrie, and are contracted to close within 2010.\n\nNew homes sales - $58.8 million\n\nGenesis now has 129 homes under contract which have either closed or are in various stages of construction. The total value of these contracts is approximately $58.8 million and all homes are expected to be completed and the sales to close in 2010.\n\nLand sales - $41.3 million:\n\nAs previously announced (see the press release of May 11, 2010), Genesis completed the closing of a sale of +/-147 acres of land in NW Calgary for $35 million. $10 million of the proceeds has been applied to reduce the Corporation's debts, a vendor take back mortgage ("VTB"), due September 30, 2010, was issued for the balance of $25 million. The Management of Genesis intends to apply the proceeds from the VTB to further reduce the Corporation's indebtedness.\nOn April 30, 2010 Genesis entered into an unconditional agreement with a third party developer to sell a 16 2/3% interest in +/- 150 acres of land in NW Calgary for $6.26 million. Genesis received $3.13 million upon closing of the sale, and a VTB which is due in one year was issued for the balance of the funds. Genesis continues to hold a 50% interest in the lands versus 66 2/3% prior to the sale of the subject lands. At the time of the sale, Genesis also entered into a 50/50 joint venture ("JV") with the third party developer. The other developer will act as operator in the development of the lands and both parties wil...