Safe & Green enters into contribution agreement to form JV

Safe & Green Holdings (SGBX) announced that its subsidiary, Safe and Green Development Corporation (SGD), has agreed to enter into a contribution agreement with an affiliate of MNO Partners to form a joint venture to develop the Lago Vista property. The cost to fully develop the property is estimated to be approximately $80M, which includes the development of the project from conception to completion. The Lago Vista property was originally purchased by SG DevCo’s subsidiary for $3.5M in 2021. Pursuant to the terms of a Contribution Agreement, SG DevCo’s subsidiary will contribute the property to the JV and receive as consideration for the property contribution a membership interest in the JV valued at $11.5M. MNO Partners will lead the development process and, after the completion of the feasibility period, will be required to submit permits for the first phase of the project within 11 months from the execution of the Contribution Agreement. It is anticipated that the JV will secure construction financing, which is a condition to the closing of the JV. The primary focus during the early stages of design include luxury condos and the marina. David Villarreal, President & CEO of Safe and Green Development Corporation, stated, “We are excited about this partnership as we’re making progress and aiming to develop the project to serve as a model of sustainable, community-focused development amid our portfolio. Our JV partner will be contributing financial resources to the development of this project. Their financial commitment to the project strengthens our joint capacity to execute successfully and deliver on the project. The initial estimate for the total project cost is approximately $80M. We believe this collaboration will generate significant value for SG DevCo and its stockholders.”