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Safe and Green Development Corporation Inks Preliminary Purchase Commitment up to $2.8M for South Texas Project

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Safe and Green Development (NASDAQ: SGD) has accepted a preliminary binding purchase commitment from Trio, acting as Program Administrator for Choctaw American Insurance, Inc., for its South Texas development project. The commitment includes:

  • Sale of the first 5 homes, expected to generate approximately $1,000,000 in revenue
  • Potential purchase of up to 14 homes, generating sales of approximately $2,800,000
  • Trio to purchase a maximum of 40% of lots within a subdivision

The agreement is subject to individual Purchase and Sale Agreements and identification of Trio-approved occupants. Closings will occur within 14 days of homes being ready for occupancy. This commitment signifies strong demand for single-family housing in the region and marks SG Devco's first pre-sales in company history.

Safe and Green Development (NASDAQ: SGD) ha accettato un impegno di acquisto preliminare vincolante da Trio, in qualità di Amministratore del Programma per Choctaw American Insurance, Inc., per il suo progetto di sviluppo nel sud del Texas. L'impegno comprende:

  • Vendita delle prime 5 abitazioni, che si prevede genereranno circa $1.000.000 di ricavi
  • Acquisto potenziale di fino a 14 abitazioni, con vendite stimate di circa $2.800.000
  • Trio acquisterà un massimo del 40% dei lotti all'interno di un'area residenziale

L'accordo è soggetto a singoli Contratti di Acquisto e Vendita e all'identificazione dei residenti approvati da Trio. Le chiusure avverranno entro 14 giorni dalla disponibilità delle abitazioni per l'occupazione. Questo impegno segna una forte domanda di abitazioni unifamiliari nella regione e rappresenta le prime pre-vendite nella storia di SG Devco.

Safe and Green Development (NASDAQ: SGD) ha aceptado un compromiso preliminar de compra vinculante de Trio, actuando como Administrador del Programa para Choctaw American Insurance, Inc., para su proyecto de desarrollo en el sur de Texas. El compromiso incluye:

  • Venta de las primeras 5 casas, que se espera generen aproximadamente $1,000,000 en ingresos
  • Posible compra de hasta 14 casas, generando ventas de aproximadamente $2,800,000
  • Trio comprará un máximo del 40% de los lotes dentro de una subdivisión

El acuerdo está sujeto a Contratos de Compra y Venta individuales y a la identificación de ocupantes aprobados por Trio. Las cierres ocurrirán dentro de los 14 días posteriores a que las casas estén listas para la ocupación. Este compromiso significa una fuerte demanda de vivienda unifamiliar en la región y marca las primeras pre-ventas en la historia de SG Devco.

Safe and Green Development (NASDAQ: SGD)는 Choctaw American Insurance, Inc.의 프로그램 관리자 역할을 하는 Trio로부터 남부 텍사스 개발 프로젝트에 대한 초기 구속력이 있는 구매 약정을 수락했습니다. 이 약정에는 다음이 포함됩니다:

  • 첫 5채의 주택 판매로 약 $1,000,000의 수익이 예상됨
  • 최대 14채의 주택 구매 가능성으로 약 $2,800,000의 매출 발생
  • Trio는 한 주택단지 내에서 최대 40%의 필지를 구매할 예정

이 협정은 개별 구매 및 판매 계약 및 Trio 승인 입주자의 확인을 조건으로 합니다. 주택이 입주 가능해진 후 14일 이내에 계약이 완료될 것입니다. 이 약정은 지역 내 단독 주택에 대한 강력한 수요를 나타내며 SG Devco의 역사상 첫 번째 선 판매를 의미합니다.

Safe and Green Development (NASDAQ: SGD) a accepté un engagement préliminaire d'achat contraignant de Trio, agissant en tant qu'Administrateur du Programme pour Choctaw American Insurance, Inc., pour son projet de développement dans le sud du Texas. L'engagement comprend :

  • Vente des cinq premières maisons, qui devraient générer environ 1 000 000 $ de revenus
  • Achat potentiel de jusqu'à 14 maisons, générant des ventes d'environ 2 800 000 $
  • Trio achètera un maximum de 40 % des parcelles dans un lotissement

L'accord est soumis à des contrats d'achat et de vente individuels et à l'identification des occupants approuvés par Trio. Les clauses de clôture auront lieu dans les 14 jours suivant la disponibilité des maisons pour l'occupation. Cet engagement signifie une forte demande de logements unifamiliaux dans la région et marque les premières préventes dans l'histoire de SG Devco.

Safe and Green Development (NASDAQ: SGD) hat ein vorläufiges verbindliches Kaufangebot von Trio akzeptiert, das als Programmadministrator für Choctaw American Insurance, Inc. tätig ist, für sein Entwicklungsprojekt im Süden von Texas. Das Angebot umfasst:

  • Verkauf der ersten 5 Häuser, die voraussichtlich Einnahmen von etwa 1.000.000 $ generieren werden
  • Potenzielle Kaufoption für bis zu 14 Häuser mit einem voraussichtlichen Verkaufsbetrag von etwa 2.800.000 $
  • Trio wird maximal 40 % der Grundstücke innerhalb eines Wohngebiets kaufen

Die Vereinbarung unterliegt einzelnen Kauf- und Verkaufsverträgen sowie der Identifizierung von von Trio genehmigten Wohnberechtigten. Die Abschlüsse erfolgen innerhalb von 14 Tagen nach der Fertigstellung der Häuser zur Belegung. Dieses Engagement zeigt eine starke Nachfrage nach Einfamilienhäusern in der Region und markiert die ersten Vorverkäufe in der Geschichte von SG Devco.

Positive
  • Preliminary binding purchase commitment for up to 14 homes, potentially generating $2.8 million in sales
  • First 5 homes expected to generate approximately $1 million in revenue
  • Marks the company's first pre-sales in its history
  • Indicates strong demand for single-family housing in South Texas
  • Additional go-forward commitment of up to 250+ residential development lots
Negative
  • None.

Insights

This preliminary purchase commitment from Trio represents a significant milestone for Safe and Green Development (SGD). The potential $2.8 million in revenue from the sale of up to 14 homes is substantial, considering SGD's market cap of $3.65 million. The initial $1 million from the first 5 homes alone could boost the company's financial position considerably.

The commitment also signals strong market demand and validates SGD's business model in the South Texas region. The additional go-forward commitment for up to 250+ residential development lots suggests potential for significant future growth. However, investors should note that this is a preliminary commitment and final sales are subject to various conditions, including individual Purchase and Sale Agreements and approved occupants.

While this news is positive, it's important to consider the execution risks and the company's ability to deliver homes on time and within budget. The 14-day closing period after homes are ready for occupancy could provide a relatively quick cash flow, but it also puts pressure on SGD to meet construction deadlines efficiently.

This preliminary purchase commitment is a strategic win for SGD in the competitive South Texas real estate market. The partnership with Trio, an established player in affordable homeownership solutions, adds credibility to SGD's development projects and could open doors to similar arrangements in the future.

The 40% cap on lot purchases within a subdivision is a prudent measure, ensuring diversification of buyers and reducing dependency on a single purchaser. This approach can help maintain a balanced community profile and mitigate risks associated with bulk sales.

The emphasis on "sustainable and eco-friendly projects" aligns with growing market trends towards environmentally conscious housing. This focus could be a differentiator for SGD, potentially commanding premium prices or attracting environmentally conscious buyers. However, the success of this strategy will depend on effectively marketing these features and demonstrating tangible benefits to homeowners.

The additional commitment for up to 250+ lots indicates confidence in SGD's ability to deliver and suggests a long-term relationship, which could provide stability and predictability to SGD's project pipeline.

MIAMI, Oct. 9, 2024 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SG Devco" or the "Company") a leading real estate development company focused on sustainable and eco-friendly projects, is pleased to announce that it has accepted a preliminary binding purchase commitment from Trio, as Program Administrator for Choctaw American Insurance, Inc. ("Choctaw"), for its development project in South Texas.

The sale of the first 5 homes, referenced in the commitment, is expected to generate approximately $1,000,000 dollars in revenue for the Company. The purchase commitment from Trio allows for a purchase of up to 14 homes within this planned development generating sales of approximately $2,800,000. The preliminary purchase commitment sets forth Trio's agreement on behalf of Choctaw to purchase homes in the Company's South Texas development project, with exact locations and pricing terms to be confirmed. Trio shall purchase a maximum of 40% of the lots within a subdivision. The commitment stipulates that each home sale shall be subject to the execution of individual Purchase and Sale Agreements as well as the identification of a Trio approved occupant. The commitment also stipulates that each closing will occur within 14 days of the home being deemed ready for occupancy.

SG Devco CEO, David Villarreal, commented, "We are pleased to accept this preliminary purchase commitment from Trio, which has over the course of 20 years helped to provide more affordable options to Americans to access home ownership. Securing this commitment is a clear indication of the strong demand for single family housing in the region & marks the first pre-sales in the Company's history. This purchase commitment not only underscores the demand for quality housing in South Texas but also solidifies SG Devco's presence in the region with an additional go-forward commitment of up to 250+ residential development lots. With the pre-sale of the first five homes underway, we are excited to continue developing the remaining lots and delivering on our vision for the community. This milestone marks a significant step forward in our long-term growth strategy."

About Safe and Green Development Corporation (SG Devco)

Safe and Green Development Corporation is a real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel. The thesis of development is to build strong, innovative and green, single or multifamily projects across all income and asset classes. Additionally, a majority owned subsidiary of SG DevCo, Majestic World Holdings LLC, is a prop-tech company that has created a real estate AI Platform. The Platform aims to decentralize the real estate marketplace, creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment. MyVONIA Innovations LLC, a wholly own subsidiary, is the owner of MyVONIA which is an AI-powered personal assistant designed to help simplify daily tasks and improve productivity for individuals and businesses. MyVONIA aims to assist with managing both personal and professional tasks.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and include statements regarding plans to sell homes in the Company's South Texas development project to Choctaw, the sale of the first 5 homes generating approximately $1,000,000 dollars in revenue for the Company, the planned development generating sales of approximately $2,800,000, solidifying SG Devco's presence in the region with an additional go-forward commitment of up to 250+ residential development lots, continuing to develop the remaining lots and delivering on the Company's vision for the community and creating an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment.

These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to construct, complete and sell to Trio, on behalf of Choctaw, homes in its South Texas development project as planned, the Company's ability to create an all-in-one solution that brings banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment, the Company's ability to obtain the capital necessary to fund its activities, the Company's ability to monetize its real estate holdings, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com 
516-662-9461

Cision View original content:https://www.prnewswire.com/news-releases/safe-and-green-development-corporation-inks-preliminary-purchase-commitment-up-to-2-8m-for-south-texas-project-302271382.html

SOURCE Safe and Green Development Corporation

FAQ

What is the value of the purchase commitment Safe and Green Development (SGD) received for its South Texas project?

Safe and Green Development (SGD) received a preliminary binding purchase commitment for up to 14 homes, potentially generating approximately $2.8 million in sales for its South Texas project.

How many homes are included in the initial sale for SGD's South Texas project?

The initial sale includes the first 5 homes, which are expected to generate approximately $1 million in revenue for Safe and Green Development (SGD).

Who made the purchase commitment to Safe and Green Development (SGD) for the South Texas project?

The purchase commitment was made by Trio, acting as Program Administrator for Choctaw American Insurance, Inc., to Safe and Green Development (SGD) for its South Texas development project.

What is the maximum percentage of lots Trio can purchase in a subdivision from SGD's South Texas project?

According to the commitment, Trio can purchase a maximum of 40% of the lots within a subdivision in Safe and Green Development 's (SGD) South Texas development project.

Safe and Green Development Corporation

NASDAQ:SGD

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