CALGARY, Alberta--(BUSINESS WIRE)--Walton Westphalia Development Corporation (the "Corporation") is pleased to announce that it has successfully repaid its senior lender in full. The balance, which was approximately US$16.3 million earlier this year, was paid from a combination of the proceeds of the sale of Phase 1A in January 2020 and cash on hand.
The full pay out of the existing senior lender has now moved the second position lender WWMN, LLC into first position.
"The reduction of debt on Westphalia Town Center puts the project in a stronger financial position moving forward, and the timing is line with our objectives when we refinanced the project over a year ago with WWMN, LLC. We are continuing to manage this development and work through additional asset sales with best in class builders and developers," said Edward R. Fleming, Executive Vice President, Walton Global Holdings, Ltd.
The Corporation successfully developed Phase 1 Westphalia Town Center, delivering 346 finished lots for homebuilders Ryan Homes, Mid-Atlantic Builders, and Haverford Homes who built urban-style townhomes.
Development of Phase 1A has already started. The new owner expects to build over 650 units of varying product type over the next few years. This development will add roof tops to Westphalia Town Center and increase demand for the much-anticipated retail facilities.
The next steps for Westphalia Town Center consist of announcing a major retail development partner for the Phase 1 retail parcel which includes entertainment, dining, and grocery vendors. The Corporation is also working on deal terms for the adjacent 80 acres of land approved for both residential and commercial uses.
Improvements to the intersection of Woodyard Rd and Pennsylvania Ave are expected to begin this spring while the construction of Presidential Parkway is expected to begin later this summer. Both of these projects are financed with tax increment financing (TIF) bonds issued by Prince Georges County in November 2018. Presidential Parkway is the main east-west thoroughfare that connects the east end of the property that is currently developed, with the west end of the property and the existing community. It provides great access to Westphalia Town Center and is expected to take approximately 12 months to complete.
The Corporation is managed by Walton Global Investments Ltd. 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 is a privately owned, leading global real estate investment, land asset management and administration group that has focused on strategically located land in major growth corridors for more than 40 years. Walton manages and administers US$3.8 billion of real estate assets in North America, on behalf of its investors and business partners. Walton has more than 106,000 acres of land under ownership, management and administration in the United States and Canada. Key entities in Walton include Walton Global Holdings, Walton International Group and Walton Development and Management. For more information visit Walton.com.
This news release, required by Canadian laws, does not constitute an offer of securities. 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.