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Submitted by: Greenscape Capital Group Inc.
Posted: Jan 06, 2010 – 10:03 AM EST
VANCOUVER, BRITISH COLUMBIA, Jan. 06 /CSRwire/ - Greenscape Capital Group Inc. (TSX VENTURE: GRN) -
-- Greenscape to build, own and operate world's greenest parking facility
-- 4200 stall lot to serve Denver International Airport (DIA), the largest airport in the United States of America
-- Appraised value, upon completion of construction (pre-cash flow) of $31,700,000 US with projected Net Operating Income of $5.1 US million per year
Greenscape Capital Group Inc. ("Greenscape") (TSX VENTURE: GRN) is pleased to announce that Green.Switch Capital Corp., a wholly-owned Greenscape company, has entered into an agreement to build, operate and own Green Park DIA.
Green Park DIA will be a 4,200 stall lot servicing the Denver International Airport.
Green Park DIA will be the world's greenest parking facility with a wide variety of environmentally sensitive operating methods in place. The construction is based on LEED GOLD building principles, alternatively fuelled shuttle vans, solar and wind energy sources, porous pavement, natural landscaping, and geothermal energy. Green Park DIA can also harness landfill produced methane gas, converting it to natural gas for facility energy needs.
By land size, DIA is the largest international airport in the United States and the third largest airport in the world. It is also the fifth busiest airport in the United States and the tenth busiest airport in the world in terms of passenger traffic. DIA was voted the 2005 "Best Airport in North America" by readers of Business Traveler Magazine and was named "America's Best Run Airport" by Time Magazine in 2002. DIA is rapidly growing and now serves more than 51 million passengers annually. Future passenger growth and airport expansion is forecast.
In addition to adding a significant financial asset to Greenscape, this transaction will also give Greenscape a "showpiece green facility" as the company seeks to green third party parking operations, via energy retrofits, throughout North America including future potential projects that fall under Propark's ambitious green mandate. This transaction will also serve as a corporate and environmental model for future potential developments at other North American airports, structured in the same manner.
-- 4200 stall lot to serve Denver International Airport, the world's tenth busiest airport
-- Cushman & Wakefield appraised value of $31,700,000 upon completion of construction, with market value upon stabilization of $42,400,000
-- 7 month construction period, fixed cost contract, guaranteed price by large commercial contractor that has been in business for 49 years in the Denver area
-- Project is "shovel-ready" and is fully permitted for construction to begin
-- management contract in place with a leading American parking lot management company that has been in the parking business for twenty five years, operating 330 locations
-- land lease in place for 25 years with 20 additional years of renewal options
-- Green.Switch to own 90% of the entity. The 10% minority interest will be owned by ProPark USA
-- total capital required $18,600,000 of which $16,300,000 is for fixed price development and construction costs with $2,300,000 in place for operating capital and future contingencies
-- $12,100,000 (65% of total capitalization) targeted to come via debt issuance from a major, chartered Canadian bank
-- average projected Net Operating Income in years 2-10 of $5.1 million annually
-- average projected Sales in years 2-10 of $19 million annually
-- project life of 25 years minimum with opportunity to extend to 45 years
(i)all values are in U.S. dollars
A Letter of Intent ("LOI") has been executed to initiate this transaction. The closing of the transaction is expected to take place on or before February 15th, 2010.
Bryan Slusarchuk, Greenscape CEO, states, "This will be the world's greenest parking facility, a world-class asset, at a world-class location. While this asset alone creates substantial potential upside for Greenscape shareholders via the project value and the targeted net income, it should be noted that this will also serve as a showpiece and as a model for future corporate expansion plans. In addition to showcasing Greenscape, today's announcement also highlights the fact that British Columbia, Canada is a leading source of talent, entrepreneurial spirit and capital in the environmental world and for that, I congratulate the environmental professionals and management of Green.Switch for getting this agreement signed."
Propark America is based in Hartford, Connecticut, generates revenues in excess of $100 million per year and manages a labour force of 1200 employees in markets across the United States including: California, Connecticut, Florida, Massachusetts, Nevada, New York, New Jersey, Ohio, Rhode Island, Texas, Virginia and Washington, D.C.. Propark has been in the parking business for twenty-five years and operates more than 330 separate locations. Propark has extensive experience branding, opening, marketing and operating parking facilities, including significant experience in operating large off-airport assets. Propark has established a significant environmental mandate, via "Propark Green" which is built around conservation and eco-friendly practices; integral components in Propark's corporate ethos. www.propark.com
About Greenscape Capital
Greenscape Capital Group increases environmental sustainability, social responsibility, and profitability of companies and their operations. Greenscape Capital owns 100% of Green.Switch Capital, a Canadian based company focused on dramatically increasing the profitability of commercial facilities through enhanced energy efficiency and environmental best practices. Green.Switch provides full-service energy retrofitting for commercial clients. The Green.Switch energy retrofit process begins with the assessment of client issues and infrastructure, through to project design, capitalizing improvements, attaining government incentive grants when applicable, contracting, installation and monitoring. Revenue to Green.Switch is targeted during every phase of this process. When marked opportunities arise, Greenscape also invests in other companies that operate in the environmental space, providing strategic capital and business advisory services to assist companies in achieving their environmental and corporate goals.
ON BEHALF OF THE BOARD
Bryan Slusarchuk, CEO and Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding Green.Switch's future revenues and contracts. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.