Sage Properties has released a letter the shareholders today, and overall I’m encouraged by what I read. My “layman’s summary” follows.
First, all the Prince of Peace Harbour and Manor (POP) residents have been well-cared for and it has not experienced any COVID-related deaths.
Second, like any other business, Sage has to hold an AGM on a regular basis. Since the current COVID restrictions preclude an in-person meeting, Sage is holding a virtual AGM on November 28, 2020. Meeting details and audited financial statements will be mailed out by November 6, 2020.
Third, water has been an issue ever since District waited until the POP building was finished before drilling a well and finding out that the well water was not fit for human consumption. Sage has been in discussions with various stakeholders about getting water to the POP property and has submitted a plan to the Rocky View County (RVC). If RVC approves of this plan a pipeline could be constructed in summer 2021.
Sage is also working with RVC to transition Sage properties to city sewer once a water connection has been made. This is huge news because a serviced property is worth a lot more than one that isn’t serviced. It is also easier to sell.
Fourth, all the Sage property environmental issues have been cleaned up and approved by Alberta Environment. Completion of this work was a pre-condition to subdividing the property. (This also means Sage isn’t spending money on expensive remediation work any more.)
Fifth, in March 2020 Sage submitted a revised subdivision proposal to RVC. Assuming this proposal is approved, a series of steps need to be completed before the sub-divided land can be registered with a seperate title for each property. Once each sub-divided property is registered, they can be sold independentaly of the other properties which will make for an easier overall sale. The subdivision work is estimated to be completed in December 2020.
Sixth, work on an overall sale of the various properties is still in the works with Sage retaining KPMG Corporate Finance in August 2019 to work with interested parties in completing the divestiture process. Like everyone else, COVID19 threw a wrench in the works which has made selling Sage’s assets a larger challenge than it would be otherwise, but regardless of the challenge the Board will continue working on completing the sale process. For reasons of confidentiality the Board can’t say any more until final purchase sale agreements are in place with a purchaser.
Once a sale agreement has been reached with a purchaser – Sage shareholders would then be asked to approve the sale. Assuming the shareholders approve the deal, the sale would be completed by Sage transferring the asset to the purchaser(s) and the purchaser paying Sage for the asset. The Board would then redeem Sage shares in exchange for proceeds from the sale.
And that’s it!
If you have any questions or concerns, please contact Sage Management using their contact page here.