December 11, 2019
Dear Shareholder,
On
behalf of SAGE Properties Corp. (“SAGE”) and the Board of Directors (“Board”)
of SAGE, we are pleased to provide you with the following updates.
SAGE would like to
encourage Shareholders to provide their email address in an effort to reduce
costs for mailing newsletters, to reach more shareholders and to provide more
timely communication. Please refer to the attached form to provide consent for SAGE
to send newsletters and other communication by electronic mail (“email”). Please return the completed form:
- By email to info@sageproperties.ca;
- Using the enclosed envelope addressed to Alliance Trust Company;
- By fax to 403.457.4707 attention: Sage Properties Corp.
If there are any
other changes to your contact information, please contact:
Alliance Trust Company
1010, 407 – 2nd St. SW
Calgary, AB T2P 2Y3
Tel: 403-237-6111
Please note SAGE’s new mailing address:
115, 1925 – 18th Avenue NE
Calgary, AB T2E 7T8
- FINANCIAL RESULTS FOR PERIOD ENDED SEPTEMBER 30, 2019
Please find attached SAGE’s unaudited interim
financial statements, including notes, for the six-month period ended September
30, 2019 for information purposes.
Please be advised that these statements have not been audited nor
reviewed by SAGE’s auditors and are subject to change.
- MARKETING PROCESS – PRINCE OF PEACE MANOR, HARBOUR & SCHOOL
Earlier this year the
board revisited the strategic plan to determine if it would be in the best
interests of shareholders to move forward with the sale of SAGE’s assets,
without the subdivision and emancipation of the utility operations being 100%
complete. During this period, SAGE also experienced an increase in interest
from qualified buyers. Seeing this increase in interest in the market, the
board made the decision to move forward with hiring a broker and to start the
process of disposing SAGE’s assets. In June 2019, the board hired KPMG Corporate
Finance, an experienced middle market broker, to commence a confidential sales
process.
In August 2019, KPMG commenced
a broad divestment process, and is currently reviewing offers that have been received
and is assisting potential buyers with due diligence. The board remains optimistic that the process
will complete with a successful transaction in 2020.
SAGE
also commenced a marketing process for the school this year and are excited
about the interest received. KPMG is
currently reviewing offers received and assisting potential buyers with due
diligence.
SAGE
continues to work towards subdivision and is in discussions with Rocky View
County (“RVC”) regarding subdivision.
Based on the feedback received from the county, SAGE is currently
developing a revised proposal with its urban planner, IBI Group, to proceed
with the next steps including discussions
regarding options for the construction of a water supply pipeline to the Prince
of Peace site. The Village and SAGE are working together with the RVC to move
the process forward with respect to the construction of a water pipeline.
SAGE
and the Prince of Peace Village condominium board (“the Village”) have been in
discussions regarding the emancipation of the utility operations and other
easement issues since 2017. In March
2018, SAGE filed a court application to replace the easements on title to
better reflect the ownership and operations of the water utility. Subsequent to the court application in 2018, SAGE
and the Village met to try to discuss and resolve the utility ownership issues. Unfortunately, a resolution was not reached
through the discussions held and in early 2019, SAGE requested a new court
hearing asking for the court to make a ruling on the ownership and easement
issues. At the court hearing held on September 12, 2019, Justice Romaine
recommended that the parties use mediation to resolve the easement issues and
both parties agreed to mediation.
A
mediation session was held on November 19, 2019 between SAGE and the Village. The mediation was successful in finding a
workable solution to the utility ownership and other easement issues. A written
agreement is currently being drafted by legal counsel to resolve the
outstanding issues.
- ENVIRONMENTAL RECLAMATION
SAGE has been working with our
environmental consultants to develop reclamation plans to reclaim the areas
known as the former sewage lagoon, the former brackish water lagoon and the
water treatment plant. In the fall of
2019, Alberta Environment approved the reclamation plans and work was scheduled.
As of the end of November 2019,
all reclamation work was completed and Alberta Environment has received the final
reports for the sewage lagoon and brackish lagoon reclamation as well as the
decommissioning of the water treatment plant. Management expects approval and
sign-off of the reclamation work by Alberta Environment by the end of the year. Subsequent monitoring and a 3-year weed
control plan will be implemented to ensure the reclaimed land returns to tame
pasture as outlined in the reclamation plans approved by Alberta
Environment.
If you have any questions regarding this newsletter, please
contact the SAGE office at (403) 478-9661 or info@sageproperties.ca
Wishing you a very Merry Christmas and all the best in 2020.
Sincerely yours,
Signed “Sandra Jory”
Sandra Jory, CPA, CA
Board Chair
Sage Properties Corp.
