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Company announces plan for 100-acre development in Alliston

February 11, 2021   ·   0 Comments

A Dorval, Quebec based company has announce it has entered into a binding agreement to purchase 100 acres of property in Alliston for future development.

Emergia Inc., is a real estate investment and development company that owns and operates multi-purpose real estate properties including retail, multi-residential, office and industrial buildings as well as land for future development with a focus on small to medium size portfolios of mixed-use properties mainly in Ontario and Quebec.

The company did not say where the property is located in the Alliston area.

The company plans to pay $15.7 million over all for the property with the closing date expected to take place early in 2021.

The acquisition of the land, done at “arm’s length”, according to their press release, will be made through a 50/50 joint venture with third parties.

Emergia will remain in charge of the management of the development project.

The corporation and its joint venture partner will each invest $5.4 million and a financing of $4.9 million with institutional lenders is being put in place to fund the balance of the purchase price.

The corporation has already paid $0.6 million in cash and the balance of its $5.4 million portion will be paid by the issuance of $4.8 million of class “A” common shares of the corporation to be issued at the higher of the closing price of the shares on the day preceding the closing of the acquisition or $1.00 per share.

Zoning of the land is “expected to change in the course of 2021.” At that time, the company intends to sell part of the land, around 70 acres, to a developer of single-family residences. The remainder of the of the property is intended to be developed in 500 multi-residential units and a strip mall of 50,000 to 60,000 square feet.

“This transaction is perfectly in line with the corporation’s business model that includes mixed-use development and sale of excess lands that do not fit in our model,” said Henry Petit, President & CEO of Emergia in a statement. “It also meets our goal of expanding our operations in Ontario, and this is a good opportunity for Emergia to start its activities in the province of Ontario.”

By Brian Lockhart
Local Journalism Initiative Reporter



         


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