Walton Big Lake Development L.P. Announces Increase in Construction Facility and Extension of Maturity Date
CALGARY, Alberta--(BUSINESS WIRE)--Walton Big Lake Development L.P. (the "Partnership") and its general partner, Walton Big Lake Development Corporation (the "General Partner") announce that the board of directors of the General Partner has approved entering into an amendment to its current construction loan facility (the "Phase 1 Facility") from a Canadian-based international financial services company (the "Phase 1 Lender") to (a) extend the maturity date of the facility by 18 months to November 1, 2014, and (b) increase the facility by $9.35 million to finance improvements to 215th Street in Edmonton, Alberta which provides access to the Partnership's property in Edmonton (the "Property").
This announcement is further to the Partnership's announcement dated July 9, 2013, wherein it disclosed that, to assist third-party sales efforts for single-family, multi-family and mixed-use sites on the Property, the Partnership was completing improvements to 215th Street in Edmonton in Phase 1 of the development of the Property rather than in Phase 2 as provided in the Property's original development plan. At that time, the Partnership announced that it had increased the loan the Partnership had from an affiliate of Walton Global Investments Ltd. by an additional $900,000 to pay a portion of the expenses related to the 215th Street improvements, and that a further $9.4 million would have to be borrowed from the Phase 1 Lender.
Today's announcement confirms that the Partnership has now entered into an agreement with the Phase 1 Lender to borrow such funds in the amount of $9.35 million and to extend the maturity date of the Phase 1 Facility until November 1, 2014. The funding of the additional amount of the loan to finance the 215th Street improvements is subject to a number of conditions.
With this amendment, the Phase 1 Facility consists of a $23.0 million non-revolving construction loan facility (including the $9.35 million facility to fund the costs of the 215th Street improvements) and a $4.994 million letter of credit facility. As at September 26, 2013, the balance of the loan under the Phase 1 Facility was $7.933 million and $4.994 million in letters of credit have been issued to the City of Edmonton of which none have been drawn on. The Phase 1 Loan Facility is secured by, among other things, a first priority mortgage on the Property.
Launched in 2010, the Partnership owns a 136.5-acre residential project in northwest Edmonton, Alberta. The project is being developed in three phases and marketed under the name “Hawk’s Ridge at Big Lake.”
The Walton Group of Companies is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. As one of North America’s leading land-based real estate investment and development firms, its expertise is in the research, acquisition, planning, administration, management and development of strategically located land in major growth corridors throughout Canada and the U.S. Walton currently manages over 78,000 acres, laying the foundation for communities where people can live, work and play, and creating wealth for our clients around the globe. Since 1979, Walton has returned over $1.5 billion CAD* in client distributions.
For more information about the Walton Big Lake Development L.P., please visit www.sedar.com. For more information about Walton, visit www.Walton.com. For more information about the Hawks Ridge development, visit www.hawksridge.ca.
*As of June 30, 2013, the amount returned is unaudited and consists of:
- Exit proceeds on sales of pre-development land
- Distributions, interest and principal repayment on development projects; and
- Interest and principal repayment on corporate bonds
This news release 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 October 2010 prospectus of the Partnership (including under the heading "Cautionary Statements") and other documents of the Partnership filed with Canadian securities regulatory authorities and available online at www.sedar.com. The forward-looking statements contained in this document are made as at the date of this news release and the Partnership does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.