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 fiscal year ended December 31, 2015 and for the fourth quarter of 2015. Launched in January 2010, the Partnership’s objective is to maximize returns to limited partners through the management of the entity and concept planning on, 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 is located immediately south and outside of Ottawa’s current urban area boundary.
In 2014, as part of its Municipal Comprehensive Review of the Official Plan, the City made a decision not to expand the urban boundary to include the Property. The Partnership filed an appeal of the Official Plan on May 15, 2014 and has been engaged throughout the process including participating in stakeholder meetings.
On February 23, 2016, the Ontario Municipal Board (“OMB”) issued a favourable decision supporting the basis of Management’s appeal of the Official Plan. The OMB decision requires the City to complete a Land Evaluation and Area Review (“LEAR”) and an Employment Lands Study, including a full and proper review of these issues, before the OMB will reconvene the hearing. The City was also advised, as part of the OMB decision, to review its planning horizons utilized to ensure consistency with the Provincial Policy Statement 2014 with a reference to a time frame of 2036, as opposed to the 2031 horizon utilized by the City in the Official Plan Amendment (“OPA“).
The OMB has adjourned the appeals pending the completion of the LEAR and Employment Lands Studies. Management anticipates it could be 2017 before the studies are completed. The findings in these studies may provide additional supporting justification for expansion of the urban boundary to include the Property, although this cannot be assured.
While the OMB hearings have been taking place, Management has also been actively participating as a stakeholder in the Employment Lands Study, commenced in early 2015 by the City, subsequent to the approval of the OPA.
On January 29, 2016, Management submitted a further response to the City restating this position and outlining the merits of the Property, and the opportunities that the Property can play, in supporting the economic development goals of the City. The recent OMB decision may also favourably impact the considerations and recommendations ultimately determined through the Employment Lands Study.
The City of Ottawa has substantially completed the previously identified drainage works project for modifications and improvements on the Monahan Creek Municipal Drain. Management worked with the City to coordinate reclamation of areas on the Property from the potential flood plain as part of this project.
As a result of the ongoing appeal and related planning processes associated with the Official Plan, the time frame for the Partnership to hold its interest in the Property as an investment has exceeded the original anticipated two to four year time horizon.
Management will continue to collaborate with the City and other levels of government in advancing the Partnership’s objectives for the Property, which focus on the Property being included within the City’s urban boundary and realizing the highest and best potential for the lands to maximize investment returns.
Year-End and Fourth Quarter Financial Results
During the year ended December 31, 2015, the Partnership realized a net loss of $826,493 compared to a net loss of $940,257 for the year ended December 31, 2014. Total expenses have decreased by $128,411 for the year ended December 31, 2015 primarily due to a reduction of servicing fees of $117,177 that occurred as servicing fees are no longer incurred subsequent to June 30, 2015 as per the agency agreements entered into between the Partnership and certain agents in respect of the Partnership’s initial offerings.
During the fourth quarter of 2015, the Partnership generated total revenues of $7,325 (December 31, 2014 - $10,849), total expenses of $194,143 (December 31, 2014 - $242,761) and a comprehensive loss of $186,818 (December 31, 2014 - $231,912). The total revenue generated during the fourth quarter of 2015 was slightly less than the same period of 2014 due to the lower cash balance which resulted in lower interest income. The total expenses generated by the Partnership during the fourth quarter of 2015 were lower than those of the fourth quarter of 2014 because no servicing fees were incurred in the fourth quarter of 2015. The Partnership’s expenses are expected to remain fairly constant for the remainder of the life of the Partnership because the most significant expenses of the Partnership, being the management fees and directors’ fees, are fixed over the life of their respective contracts. The net loss incurred by the Partnership was consistent with Management’s expectations because the Partnership is not expected to generate significant revenues, except during periods when property is sold.
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 35 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 audited financial statements for the year ended December 31, 2015 and related notes, prepared in accordance with International Financial Reporting Standards.