Safe and Green Development Corporation Announces Entry Into Contribution Agreement To Form A Joint Venture To Develop The Lago Vista Property; The Cost To Fully Develop The Property Is Estimated To Be ~$80M
Portfolio Pulse from Benzinga Newsdesk
Safe and Green Development Corporation (NASDAQ:SGD), also known as SG Devco, has entered into a contribution agreement with MNO Partners to form a joint venture for developing the Lago Vista property. The project, estimated to cost around $80 million, will include luxury condos and a marina. SG Devco's subsidiary originally bought the property for $3.5 million and will now contribute it to the JV, receiving a membership interest valued at $11.5 million. MNO Partners will lead the development and secure construction financing as a condition for closing the JV.
December 04, 2023 | 3:02 pm
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SG Devco has formed a JV with MNO Partners to develop the Lago Vista property, with the project estimated at $80M. SG Devco contributes the property, valued at $11.5M, in exchange for a membership interest in the JV.
The formation of the JV and the development of the Lago Vista property are likely to be viewed positively by investors, as it represents a significant investment in SG Devco's portfolio and potential for future revenue growth. The valuation increase from $3.5M to $11.5M for the property contribution also reflects positively on the company's asset management and could lead to an increase in stock price in the short term.
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