Emergia purchases 100-acre Alliston development site for $14.4 million

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Ontario Construction News staff writer

Montreal-based Emergia Inc. says that it closed on Monday its previously announced potential acquisition of approximately 100 acres in Alliston for $14.4 million. The price for the Simcoe County site excludes closing costs and a reserve for interests and pre-development costs.

โ€After announcing this acquisition at the end of January, we are proud to announce the closing of this transaction which is a first step of our activities in the province of Ontario,โ€ย  Emergia president and CEO Henri Petit said in a statement. โ€œOur plan is to realize other transactions to pursue our business plan that includes an expansion in Ontario in the short term.โ€

Emergia says the armโ€™s length purchase was paid through $9,600,000 in cash and $4,800,000 in Class A shares at $1.00 per share, of which 300,000 have been issued and 4,500,000 โ€œare reserved for issuance upon receipt of the allocation of such shares between the vendors,โ€ the statement said.

โ€œTo satisfy a portion of the purchase price, the corporation entered into a financing of $9,000,000 at an interest rate of 6% per year payable at maturity on March 10, 2023, plus a participation in the profits of the project.โ€

The landโ€™s zoning is expected to change later this year. Then Emergia says in a statement it intends to sell sell approximately 70 acres to a single-family home developer.

Emergia plans to develop the remainder of the site by building 500 multi-residential units and a 50,000 to 60,000 sq. ft. strip shopping centre.

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