Put and call option sale contracts for development properties
Piper Alderman acted for Alceon in the preparation of a put and call option agreement and contract for the sale of 385 MacArthur Avenue subject to commercial leases, and the preparation of a development agreement and contract for the construction, leasing and sale of 391 MacArthur Avenue.
Alceon is the developer of commercial properties at 385 and 391 MacArthur Avenue, Hamilton.
Alceon agreed to sell the completed and leased building at 385 MacArthur Avenue to the Stronghold Investment Group and to enter into a development agreement and contract with the Stronghold Investment Group for the development and sale of 391 McArthur Avenue on a fund through basis. The value of the transaction for 385 MacArthur Avenue was circa $31 million and 391 MacArthur Avenue was circa $30 million.
The documentation was complex, as both transactions needed to be completed together. The development agreement for 391 MacArthur Avenue was finalised on the basis of a fully leased building and required the parties to agree on the key metrics for leasing to ensure that the minimum rental was achieved. In addition, complex financing arrangements for the construction of the building on 391 MacArthur Avenue were required to be negotiated by the parties.
Piper Alderman was successful in negotiating the documentation required for the transaction and the completion of the transaction.