SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Westphalia Dev. Corp. (the “Corporation”) announced today its results for the first quarter ended March 31, 2022. The Corporation was formed in March 2012, for the development of a 310-acre Westphalia property located in Prince George’s County, Maryland, United States.
Development and Sales
The key development and sales activities of the Corporation in the first quarter ending March 31, 2022, were:
- The general business plan for the Westphalia development was updated to incorporate feedback from the Prince George’s County surrounding community, city and state officials as well as potential buyers.
- Major infrastructure development is continuing including roads, storm water and sewer utilities leading into and through the Master Plan using two tax incremental financing (“TIF”) funded projects.
- A planning effort has been initiated aimed at revising the Preliminary Plat and Conceptual Development Plan that will take place throughout the remainder of this year and into 2023, ahead of closing on pending sales transactions with the developer of the proposed last mile distribution buildings.
- The Corporation is engaged in discussions with prospective builders and developers regarding the purchase of fully engineered lots with the goal to adhere to the business plan modification. Final commitments will be deferred until the plan has been advanced through the regulatory process and is closer to approval.
- The Westphalia Town Center re-planning is in process to incorporate more residential units alongside retail space to accommodate growth in the area. A cohesive mixed-use plan for the retail core of the Master Plan is underway to complement the planned industrial space in the westernmost parcels. Engineering plans that require application submittals to regulatory and County agencies will begin in the second quarter 2022.
- The general business plan modification made during the first quarter 2022 included changes to defer additional land sales until after the re-planning is complete; therefore, there was no revenue recognized for the quarter.
- In January 2022, the Corporation secured a US$3.6 million operating expense loan from its lender, WWMN, LLC. After the end of the first quarter 2022, the senior loan, including the January 2022 operating expense advance, was re-negotiated with WWMN, LLC, for an aggregate loan amount of US$44.5 million with interest at 12% and a maturity date of June 30, 2023, with the option to extend an additional year.
- Operating expenses for this quarter remained consistent with Q12021.
The Corporation’s financial statements and management’s discussion and analysis for the first quarter ended March 31, 2022, are available under the Corporation’s SEDAR profile at www.sedar.com.
The Corporation is managed by Walton Global Investments Ltd. (“Walton Global”) and the development of the project is managed by Walton Development & Management (USA), Inc., both of which are members of the Walton group of companies (“Walton”).
Walton Global is a privately-owned, leading land asset management and global real estate investment company that concentrates on the research, acquisition, administration, planning, and development of land. With more than 43 years of experience, Walton has a proven track record of administering land investment projects within the fastest growing metropolitan areas in North America. The company manages and administers US$3.6 billion in assets on behalf of its global investors located in 73 countries, builders and developers and industry partners. Walton has more than 97,000 acres of land under ownership, management and administration in the United States and Canada with business lines ranging from exit-focused pre-development land investments, land financing programs and build-to-rent. For more information visit walton.com.
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. Forward-looking information is based on the current expectations, estimates and projections of the Corporation at the time the statements are made. They involve a number of known and unknown risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. The risks, uncertainties and other factors that could cause the Corporation’s actual results and performance in future periods to differ materially from the forward looking information contained in this news release include, among other things, the development of Westphalia Town Center, general economic and market factors, including interest rates, a decline in the real estate market, changes in government policies and regulations or in tax laws, changes in municipal planning strategies and whether certain development approvals are obtained and changes in the Canadian/U.S. dollar exchange rate, in addition to those factors discussed or referenced in 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 condensed interim consolidated financial statements for the three months ended March 31, 2022, and related notes, prepared in accordance with International Financial Reporting Standards.