HLD Land Development Limited Partnership

March 05, 2009 19:14 ET

HLD Land Development Limited Partnership: Potential Asset Sale

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2009) - The board of directors of DiGiT Development Inc. ("DiGiT"), the general partner of HLD Land Development Limited Partnership ("HLD") (NEX:HLD.UN), is pleased to announce that it has received an offer to purchase and entered into an agreement (the "Agreement") to sell the debentures (the "Debentures") constituting substantially all of the assets of HLD (the "Transaction").

The Debentures were issued by Landus Development Group Inc. ("Landus") on September 30, 2006 as part of an asset sale whereby Landus purchased substantially all of the real estate and other assets of HLD. Since 2006, the Debentures have been the only significant asset of HLD, and the interest earned thereon constitutes its only source of income.

Under the Agreement, the purchase price for the Debentures is $2,900,000. The Transaction remains subject to certain conditions set forth in the Agreement, including adequate financing being secured by the purchaser, and the approval of the Transaction by NEX and the limited partners of HLD being obtained by HLD. The approval of the limited partners of HLD for the Transaction will be sought at an extraordinary general meeting of HLD to be held on March 31, 2009.

Following completion of the Transaction, HLD will be dissolved. The outstanding liabilities of HLD will be paid and the remaining assets of HLD will be distributed to the limited partners in accordance with the terms of the Limited Partnership Agreement.

If the approval of NEX is obtained and all of the conditions precedent to the Transaction are satisfied, the Transaction is expected to close in approximately July of 2009.

NEX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • HLD Land Development Limited Partnership
    Tom Oliver
    President and Chief Executive Officer
    (604) 568-7655