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.
”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,” Emergia president and CEO Henri Petit said in a statement. “Our plan is to realize other transactions to pursue our business plan that includes an expansion in Ontario in the short term.”
Emergia says the arm’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 “are reserved for issuance upon receipt of the allocation of such shares between the vendors,” the statement said.
“To 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.”
The land’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.