CALGARY, Aug. 10 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Corporation") is pleased to announce that it has secured 3 new financings and successfully negotiated 4 extensions of maturities on existing loans totaling approximately $51.8 million since May 21, 2009.
The three new financings, totaling approximately $11.3 million include the following:
- $3.3 million secured by completed lots in Airdrie and NE Calgary,
with $8.1 million having been repaid by June 30, 2009.
- A 12 month renewal of a loan agreement for an additional
$3.5 million, secured by lands in the NW of Calgary.
- An 18 month loan agreement for $4.5 million, secured by lands in
NE Calgary.
The four extensions of existing financings, totaling approximately $40.5
million, include the following:
- A housing construction loan of $23.4 million has been extended to
May 31, 2010. Under the extension agreement, the Corporation must
repay cumulative amounts of $9,817,000 by August 31, 2009;
$14,817,000 by November 30, 2009; $19,817,000 by February 28, 2010
with the balance due on May 31, 2010.
To July 31, 2009, the Corporation has repaid $8.2 million through
closings of the multi-family home project secured under the credit
facility. The Corporation also has a further 11 signed multi-family
sales which are expected to close in August that will contribute an
additional $2.1 million which will exceed its August 31, 2009
repayment obligations.
- A land acquisition loan, totaling $13.8 million, has been extended to
January 1, 2011.
- A land project loan, totaling $1.8 million has been extended to
November 1, 2009.
- A land project loan, totaling $1.4 million has been extended to
November 1, 2009.
The management team is working on additional financings using unsecured lands/lots in the Corporation's inventory, further loan extensions/re-financings and the divesting of certain properties. Despite incurring additional financings, Genesis has been able to reduce its overall debt balance with the use of cash flow from the collection of accounts receivable and single and multi family home closings.
Genesis Land Development Corp. is a Calgary based land development company with an inventory of more than 24,000 future residential building sites (single-family and multi-family) and over 300 acres of commercial/ industrial lands in Western Canada, of which more than 14,000 residential lots and over 300 acres of commercial/industrial lands are located in the Calgary metropolitan area.
Certain statements in this news release could constitute forward-looking statements. The Corporation's line of business involves risk, uncertainties and other factors which may cause actual results, performance or achievements of Genesis to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include the number of dwelling sites that Genesis will actually develop and sell.