CALGARY, Alberta--(BUSINESS WIRE)--Walton Ontario Land L.P. 1 (the “Partnership”) and its general partner Walton Ontario Land 1 Corporation (the “General Partner”) announced today the Partnership’s results for the first quarter of 2015. Launched in January 2010, the Partnership’s objective is to maximize returns to limited partners through the management of the entity, concept planning and eventual sale of its Ottawa Property (the “Property”).The Property consists of approximately 300 acres adjacent to existing residential communities located to the north and northwest, and immediately south of Ottawa’s current urban area boundary.
During 2014, the Partnership fully participated in the 2014 Official Plan review process to support and position the Property in future expansions to Ottawa’s urban boundary. While the City has indeed ruled on its Official Plan, and did not expand its urban boundary, the 2014 Official Plan and any proposed amendments do not come into effect until the Provincial Minister of Municipal Affairs has made a final ruling and all appeals have been addressed. Management appealed the City’s Official Plan including the conclusion not to expand the urban boundary. The Ontario Municipal Board (the “OMB”) held the pre-hearing on April 7 and 8, 2015 where the Partnership and several other appellants made presentations. At the pre-hearing the City acknowledged that specific appeals to portions of the Official Plan had merit. The Partnership is awaiting the decision of the OMB on the pre-hearing and, if favourable to the Partnership’s appeal, a date for the subsequent hearing.
Management and the Partnership continue to share the view that the Property has excellent attributes to accommodate a future employment and mixed-used development opportunity and is well suited for an urban boundary expansion.
The Property is bordered to the north and north-west by developing residential communities, and is located along three arterial roads based on the City of Ottawa’s hierarchy of road networks. A Notice of Completion and the filing of the Environmental Study Report for the Hope Side Road-Old Richmond-West Hunt Club Corridor Kanata South Class Environmental Assessment Study took place in early 2014 proposing the corridor’s widening to a four-lane arterial road. It is anticipated that additional land may be required along the Property’s north frontage for road widening and constructing three proposed traffic roundabouts. Management continues to monitor the timing of these improvements with the City.
The City of Ottawa is undertaking a drainage works project for modifications and improvements on the Monahan Creek Municipal Drain. A portion of this drain bisects the Property and is downstream of the existing Monahan stormwater management facility. Management is undertaking a headwater drainage feature assessment to satisfy the requirements of the Rideau Valley Conservation Authority and is working in cooperation with the City to facilitate this work which is ultimately beneficial to the use and servicing of the Property.
Management will continue to collaborate with the City and other levels of government in advancing the Partnership’s objectives for the Property, which focuses on the Property being included within the City’s urban boundary and realizing the highest and best use potential for the lands to maximize investment returns.
The board of directors of Walton Ontario Land 1 Corporation, the general partner of the Partnership, has determined, based on a recommendation from management and on the board’s review of various strategies available with respect to the Property, to lower the listing price of the Property from $185,000 per acre to $130,000 per acre, in addition to continuing to pursue inclusion of the Property within Ottawa’s urban boundary.
First Quarter Financial Results
During the three months ended March 31, 2015, the Partnership realized a net loss of $239,218 compared to a net loss of $240,489 for the three months ended March 31, 2014. This was consistent with management’s expectations, because the Partnership is not expected to generate significant revenues, except during periods when property is sold and the Partnership’s expenses are also expected to remain fairly constant throughout the life of the Partnership. This is because the most significant expenses of the Partnership, being the management fees, servicing fees and directors’ fees, are fixed over the life of their respective contracts.
Overall, the Partnership is performing as expected by management and consistent with the Partnership’s intention of holding its interest in the Property as an investment until market conditions are appropriate, at which time it is anticipated that a sale will be made.
Additional Information
The Partnership is managed by Walton International Group Inc. which is a member of the Walton Group of Companies.
The Walton Group of Companies (“Walton”) is a multinational real estate investment, planning, and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.
Walton has been in business for over 30 years and takes a long-term approach to land planning and development. Walton’s industry-leading expertise in real estate investment, land planning and development uniquely positions Walton to responsibly transition land into sustainable communities where people live, work and play.
Its communities are comprehensively designed in collaboration with local residents for the benefit of community stakeholders. Its goal is to build communities that will stand the test of time: hometowns for present and future generations.
For more information about Walton Ontario Land L.P. 1, please visit www.sedar.com. For more information about Walton, visit www.Walton.com.
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This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and are based on unaudited financial statements for the three months ended March 31, 2015 and related notes, prepared in accordance with International Financial Reporting Standards.