- Allows Limoneira and The Lewis Group of Companies to Begin Detailed
Project Planning and Permitting for the Gateway Project -
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (the "Company" or "Limoneira") (NASDAQ: LMNR)
announced today that, as anticipated, Santa Paula's City Council voted
unanimously to approve amendments to the Santa Paula Gateway residential
development plan. The Santa Paula Gateway includes residential and
commercial property and it is the residential component that was part of
Limoneria's recently announced joint venture (the "Project") with The
Lewis Group of Companies (the "Lewis Group"), a leading residential real
estate investment and land development company. The amended development
plan allows for greater flexibility in the housing product mix and
provides for more drought tolerant landscaping for the Project, which
includes the development of a 500 acre master planned community with
approximately 1,500 residential units. The Company received $2 million
in September 2015 and upon the completion of certain conditions to close
the transaction, expects to receive an additional $18 million from the
Lewis Group in November 2015 for a 50% interest in the joint venture. In
addition, Limoneira is expected to receive approximately 70% of the net
cash flow of the Project over its estimated 7 to 10 year life.
Harold Edwards, President and Chief Executive Officer of Limoneira,
stated, "The unanimous vote from Santa Paula's City Council for our
development plan underscores the strong community support for the Santa
Paula Gateway. We are very excited about our partnership with the Lewis
Group. Over its long operating history, the Lewis Group has earned a
reputation for creating high quality development projects with a strong
focus on community. In addition, they have established excellent
relationships with home builders, which will be extremely beneficial as
we begin selling developed lots over the next several years."
Mr. Edwards continued, "The median home price in Ventura County for the
June to August 2015 period was approximately $510,000, which represents
potential upside to the median home price of approximately $480,000 that
was used in our initial Project planning. Our initial forecast estimates
that Limoneira should receive approximately $100 million of the Project
net cash flow over the life of the Project. We estimate that each
$50,000 increase in the median home price for the Project will result in
approximately $20 to $30 million of additional net cash flow for
Limoneira over the life of the Project, assuming no change in other
Project assumptions, providing significant upside potential for
Limoneira. Our partnership with the Lewis Group aligns our interests and
allows us to collectively work to optimize the Project's value."
"In addition to the residential opportunity, the Santa Paula Gateway
includes over 40 acres of property for future commercial and retail
development. We have been extremely encouraged by the strong interest
from potential tenants in the Santa Paula Gateway, including big box
retail, drug stores, banks, out-patient medical facilities and
educational centers. The synergies between the residential and
commercial components of the Santa Paula Gateway will create a highly
desirable community in a prime Southern California location."
About Limoneira Company
Limoneira Company, a 120-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra) is a dedicated sustainability company with approximately 10,700
acres of rich agricultural lands, real estate properties and water
rights in California and Arizona. The Company is a leading producer of
lemons, avocados, oranges, specialty citrus and other crops that are
enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on Limoneria's current expectations
about future events and can be identified by terms such as "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," and similar expressions referring to future periods.
The Companies believe the expectations reflected in the
forward-looking statements are reasonable but cannot guarantee future
results, level of activity, performance or achievements. Actual
results may differ materially from those expressed or implied in the
forward-looking statements. Therefore, the Companies caution you
against relying on any of these forward-looking statements. Factors
which may cause future outcomes to differ materially from those foreseen
in forward-looking statements include, but are not limited to: changes
in laws, regulations, rules, quotas, tariffs and import laws; weather
conditions that affect production, transportation, storage, import and
export of fresh product; increased pressure from crop disease, insects
and other pests; disruption of water supplies or changes in water
allocations; pricing and supply of raw materials and products; market
responses to industry volume pressures; pricing and supply of energy;
changes in interest and currency exchange rates; availability of
financing for land development activities; political changes and
economic crises; international conflict; acts of terrorism; labor
disruptions, strikes or work stoppages; loss of important intellectual
property rights; inability to pay debt obligations; inability to engage
in certain transactions due to restrictive covenants in debt
instruments; government restrictions on land use; and market and pricing
risks due to concentrated ownership of stock. Other risks and
uncertainties include those that are described in the Companies' SEC
filings, which are available on the SEC's website at http://www.sec.gov.
The Companies undertake no obligation to subsequently update or
revise the forward-looking statements made in this press release, except
as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150929005393/en/
Limoneira Company:
Investor Relations
ICR
John
Mills,646-277-1254
Partner
Source: Limoneira Company
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