Ontario Construction News staff writer
Emergia Inc. says it has entered into a binding agreement to purchase approximately 100 acres of land in Alliston in Simcoe County for $15.7 million (including closing costs and a reserve for interests and pre-development costs). The closing is expected to take place in the first quarter of 2021 and is subject to customary conditions.
The company says the land acquisition, done at armโs length, will be made through a 50/50 joint venture with third parties, whereby Emergia will remain in charge of the management of the development project.
โThe corporation and its joint venture partner will each inject $5.4 million and a financing of $4.9 million with institutional lenders is being put in place to fund the balance of the purchase price,โ the statement said. Emergia said it has already paid $600,000 in cash, while the balance of its $5.4 million portion โwill be paid by the issuance of $4.8 million of class โAโ common shares of the corporation to be issued at the higher of the closing price of the shares on the day preceding the closing of the acquisition or $1.00 per share.โ
Zoning of the land is expected to change in the course of 2021, following which the corporation intends to sell part of the land to a developer of single-family residences (approximately 70 acres). The remainder is intended to be developed in 500 multi-residential units and a proximity services strip shopping center of 50,000 to 60,000 sq. ft.
โThis transaction is perfectly in line with the corporationโs business model that includes mixed-use development and sale of excess lands that do not fit in our model,โ said Emergia president and CEO Henri Petit. โIt also meets our goal of expanding our operations in Ontario, and this is a good opportunity for Emergia to start its activities in the province of Ontario.โ