Safe & Green announces non-binding LOI to sell Lago Vista Site for $11.5M

Safe & Green Holdings announced that a subsidiary of its real estate development subsidiary, Safe and Green Development Corporation has entered into a new non-binding letter of intent to sell its Lago Vista site for $11.5M, the proceeds of which will be invested as equity in a new joint venture with a premier real estate development firm. The two companies plan to co-develop the site using SG Echo’s modular units. The Lago Vista property was initially acquired by the Company in 2021 for $3.5M. ..We are extremely pleased with the terms of this new LOI for the sale of our Lago Vista site,” said David Villareal, President & CEO of Safe and Development Corporation. “As we have stated in the past, we believe there is tremendous potential in the Lago Vista property. The LOI contemplates an $11.5 million purchase price; however, we have elected to receive payment as equity in a joint venture to be formed with one of the region’s leading real estate development firms, who will be responsible for funding development of the site. Together, the two companies will be responsible for developing the land, and it is expected that SG Echo will supply the modular units. In this way, we anticipate that Safe & Green Holdings will generate revenue from its manufacturing services, while both Safe & Green Holdings and SG DevCo will benefit from the anticipated appreciation of the property. This site, once developed, may include a hotel, luxury condos, and even a marina. Overall, we believe that the planned sale and joint venture represents the best possible outcome for both Safe & Green Holdings and SG DevCo, as well as the respective shareholders of both companies, showcasing our proficiency in optimizing and capitalizing on our strong asset base and manufacturing capabilities.” The LOI is non-binding and subject to a number of conditions, including execution of a final purchase and sale agreement and establishment of the joint venture. After execution of a final purchase and sale agreement, the buyer will have an initial 150 day feasibility period, which may be extended, to conduct surveys, assessments and other tests, during which the buyer can terminate the purchase and sale agreement in its sole discretion.