-Planned Development of 500-Acre Master Planned Community in Santa
Paula, California-
-Expected to Offer Approximately 1,500 Residential Units for Sale-
-Limoneira Expects to Receive Approximately $100 Million of Net Cash
Flow Over Life of Project-
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (the "Company" or "Limoneira") (NASDAQ: LMNR)
announced today that is has entered into a Contribution Agreement as the
initial step that will facilitate a joint venture with The Lewis Group
of Companies (the "Lewis Group"), a leading residential real estate
investment company, for the planned development of Santa Paula Gateway
("Gateway Project" or "Project"). Limoneira received a deposit of $2.0
million from the Lewis Group upon entering into the Contribution
Agreement. Upon the completion of certain conditions to close the
transaction, which is anticipated in November 2015 and includes the
contribution of the property to the joint venture, Limoneira expects to
receive an additional $18 million from the Lewis Group for a 50%
interest in the joint venture. The Company expects to receive
approximately $100 million of net cash flow over the seven to ten year
life of the Project. The Project is expected to begin selling developed
lots to home builders during the fourth quarter of 2017.
Santa Paula Gateway Joint Venture Project:
-
The Project represents a significant portion of single-family detached
homes expected to be built in Ventura County in the next several years;
-
Limoneira to receive $20 million from the Lewis Group for a 50%
interest in the joint venture;
-
Limoneira expects to receive approximately $100 million of net cash
flow over the estimated 7 to 10 year life of project;
-
Project costs are expected to be shared equally by the joint venture
partners until loan proceeds and or project revenues are sufficient to
fund the project;
-
Project funding requirements are currently estimated to total $10M to
$15M for each joint venture partner for the first two years of the
project;
-
The Project is expected to begin selling developed lots to builders
during the fourth quarter of 2017;
-
Range of residential unit selling prices expected to be between
$300,000 and $750,000;
-
Project does not include an additional 500,000 square feet of
commercial and 150,000 square feet of light industrial future
development opportunities.
In addition to the residential, commercial and light industrial
facilities, the Santa Paula Gateway Project is expected to include an
elementary school, a 38 acre community park and other master planned
community amenities.
"We are extremely excited to partner with one of the leading land
development companies on the west coast," stated Harold Edwards,
President and Chief Executive Officer of Limoneira. "The Lewis Group is
a 60-year-old multi-generation company that has a proven track record of
developing highly successful and sought after residential projects
throughout Southern California. We have great respect for the
significant accomplishments the Lewis Group has enjoyed over its history
and we believe the shared heritage, culture and values of our companies
will help make the Gateway Project a success for both of our
organizations and the City of Santa Paula. We will leverage the
expertise and strong reputation of our combined companies to meet the
growing demand for high-quality homes in Ventura County."
Mr. Edwards continued, "The Gateway Project is a great example of
Limoneira unlocking the value of its extensive real estate assets. We
believe that over time, this project this will result in significant
cash flows, which will allow us to significantly increase the operating
results of our global agribusiness. We are confident this will enhance
the long-term value of our company for our shareholders and deliver on
our stated goal of becoming one of the leading citrus agribusinesses in
the world."
Mr. Randall Lewis, Executive Vice President of The Lewis Group of
Companies commented, "We are delighted to partner with Limoneira on the
Santa Paula Gateway project which represents a tremendous opportunity to
meet the growing demand for single-family homes in Ventura County. The
beauty of the Gateway Project offers a unique and highly desirable
location by combining reasonably priced homes that are only fourteen
miles from the Pacific Ocean and accessible to several major highways
and the greater Los Angeles area."
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.
About The Lewis Group of Companies
The Lewis Group of Companies continues today as one of the nation's
largest privately held real estate development companies. The Lewis
Group focuses on developing mixed-use planned communities and
residential subdivisions in California and Nevada, as well as building
and owning rental communities, shopping centers, and office and
industrial parks. As the Lewis Group of Companies begins its 60th year,
many long-tenured employees under the direction of a second and third
generation management team continue the tradition of quality, integrity
and stability that was of paramount importance to Ralph and Goldy Lewis
when they founded their home building firm in Claremont, California in
1955. Strict adherence to this philosophy has resulted in the
development of more than 57,000 homes, 10,000 apartments and 14 million
square feet of retail, office, and industrial space. Since 1955, the
Lewis organization has developed new communities in California, Nevada,
Arizona, and Utah, totaling in excess of 25,000 acres and housing more
than 100,000 families.
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/20150909005568/en/
Limoneira Company:
Investor Relations
ICR
John
Mills
Partner
646-277-1254
or
Media
ICR
Alexis
Harrison
203-682-8238
Source: Limoneira Company
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