Walton Westphalia Development Corporation (the “Corporation”)
announced today the Corporation’s results for the third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Corporation generated total
revenues of $2,890,492, total expenses of $3,116,874 and a net loss and
comprehensive loss of $226,382. The revenues earned by the Corporation
were comprised of the proceeds from the land sale to Walton Westphalia
Europe, LP (“WWE”) of $2,882,119 and interest earned on the
Corporation’s cash on hand. The expenses during the third quarter
primarily consisted of $2,882,119 in cost of land sales related to the
sale to WWE, $41,978 in costs incurred for the private placement and
$113,703 in costs incurred for the management of the Corporation.
On a year-to-date basis, the Corporation generated total revenues of
$2,906,277, total expenses of $3,654,489, and a net loss and
comprehensive loss of $748,212. The revenues earned by the Corporation
during the period from January 4, 2012, to September 30, 2012, were
comprised of the proceeds from the land sale to WWE of $2,882,119 and
interest earned on the Corporation’s cash on hand. The expenses for the
year-to-date period primarily consisted of $2,882,119 in cost of land
sales related to the sale to WWE, $394,111 in costs incurred for the
preparation of the Initial Public Offering (IPO) and Private Placement
and $201,528 in costs for the management of the Corporation.
The nature and amount of the expenses incurred by the Corporation for
the year-to-date period were consistent with management’s expectations
for the period. The net loss incurred by the Corporation for the
year-to-date period was also consistent with management’s expectations
because the Corporation is not expected to generate significant revenue,
except during periods when the sale of lots is completed.
Highlights For The Third Quarter
During the third quarter of 2012, the main priority of the Corporation
was to raise capital through the Private Placement to help the
Corporation carry out its investment strategy. In working towards this
objective, the Corporation completed several private placements during
the third quarter, which resulted in the issuance of a total of 279,852
Units for gross proceeds of $2,798,520. As at September 30, 2012, the
Corporation issued a total of 2,627,407 units for gross proceeds of
$26,274,070. Subsequently, in October the Corporation held its fifteenth
and final closing of its Private Placement. In the aggregate, it issued
1,574,870 units for gross proceeds of $15,748,700.
The Corporation has now terminated its private placement offering. As a
result, since and including its prospectus offering, which was completed
on March 20, 2012, the Corporation has issued an aggregate 3,017,170
shares and $15,085,850 principal amount of Debentures for aggregate
proceeds raised of $30,171,700.
The third quarter also saw the following achievements:
In July, the Corporation announced that it had refined and updated its
preliminary development plan for the Property to better align the
development plan with current and future market opportunities;
The significant changes to the Phase 1 development plan were as
increased the number of townhomes from 300 units to 347 units;
approximately 250,000 square feet of retail will be accelerated
from Phase 2 to Phase 1; and
the Phase 1 portion of the office component will be shifted to
The submission of additional drawings to support a detailed site plan
for Phase 1 infrastructure. Subsequently, on October 18, the
Corporation received approval of its Detailed Site Plan for
infrastructure from the Prince George’s County Planning Board. The
approval is the first of the Corporation’s key critical path approvals
required for obtaining a grading permit in February 2013;
Submissions of additional information to support the hydraulic
planning and analysis amendment to the Washington Suburban Sanitary
Continued meetings with county officials and agencies to ensure
continual progress towards the end goal of issuing permits for the
In August, the Corporation sold approximately 11.4% or approximately
35 acres of the Property to WWE as part of a planned joint operation
to develop the Property. Subsequently in October, WWE acquired an
additional 3.1% bringing its aggregate ownership interest to 14.4%.
The project is proceeding as anticipated and management expects that the
project will be completed within the approximate seven-year time frame
and achieve a net internal rate of return of 15% as disclosed in the
Prospectus and Offering Memorandum.
Launched in 2012, the Corporation was formed to provide investors with
the opportunity to participate in the acquisition and development of the
310-acre Westphalia property located in Prince George’s County,
Maryland, seven miles southeast of the District of Columbia.
The Corporation is managed by Walton Asset Management L.P., and
development of the Property is managed by Walton Development &
Management (USA), Inc., both of which are part of the Walton Group.
The Walton Group is a multinational group of real estate investment and
development companies headquartered in Calgary, Alberta, Canada.
Walton’s expertise is the research, acquisition, management and
development of strategically located land in major North American growth
corridors. With more than 70,000 acres of land under management, the
Walton Group is one of North America’s premier land asset managers.
Walton manages and/or owns land assets in Phoenix, Austin, Dallas,
Atlanta, Charlotte, the Washington, D.C. region, Ottawa, Toronto,
Edmonton and Calgary.
For more information about the Walton Westphalia Development
Corporation, please visit www.sedar.com.
For more information about Walton, visit www.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. 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 unaudited financial statements for the period ended
September 30, 2012, and related notes, prepared in accordance with
International Financial Reporting Standards.