Walton Ontario Land L.P. 1 Reports Second Quarter 2014 Results
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 second quarter of 2014. 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 the 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 the second quarter of 2014, the Partnership continued to participate in the City of Ottawa’s 2014 Official Plan review process to support the inclusion of the Property in future expansions to Ottawa’s urban boundary. The City has issued a decision on its Official Plan review process and has decided not to expand its urban boundary, however completion of the process is not final until the Minister of Municipal Affairs and Housing (“MMAH”) has made a final ruling and all appeals have been exhausted.
During the course of the City’s review process, the Partnership made submissions citing that the future prosperity and competitiveness of the City in promoting economic development is contingent on the quality and quantity of employment lands being made available to existing and future users.
The Partnership has filed an appeal to the MMAH about the City’s review process and in particular for not adequately addressing the quality of employment lands in its deliberations. Walton’s appeal along with those of 31 other appellants was received and their status confirmed by the Ministry on May 30, 2014. A pre-hearing has been suggested for the spring of 2015 to determine the joint status of the appellants.
The Partnership believes that the Property is well suited for an urban boundary expansion providing an excellent opportunity to accommodate employment and supporting mixed uses, in an enterprise designated concept plan that has the potential to create new employment opportunities in the Ottawa area. As the Partnership’s investment objective is to maximize returns to its limited partners, these initiatives would position the Property to achieve the highest and best use potential.
Second Quarter Financial Results
During the three months ended June 30, 2014, the Partnership realized a net loss of $238,184 compared to a net loss of $234,800 for the three months ended June 30, 2013. This was consistent with management’s expectation because the Partnership is not expected to generate significant revenues, except during periods when a property is sold. 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 for a sale to be made.
The Partnership is managed by Walton International Group Inc., part of the Walton Group of Companies.
The Walton Group of Companies (“Walton”) is a family-owned, 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.
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 June 30 2014, and related notes, prepared in accordance with International Financial Reporting Standards.