Benzinga | Jul 14, 2021 04:01PM EDT

Limoneira Announces Letter of Intent for Sale of East Area 2 Property

Limoneira Company (the "Company" or "Limoneira") (NASDAQ:LMNR), a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, today announced it has entered into a non-binding letter of intent to sell 25.28 acres of its 32 acre real estate asset referred to as "East Area 2" in Ventura County, California to Pacific Coast Investments, Inc. and/or its nominee (the "Buyer") in five staged purchases (the "Transaction"). Completion of the Transaction is subject to the execution of a purchase and sale agreement ("PSA"). In addition, the purchase of Lot 1 (medical office building) and Lot 2 (acute care hospital) will be contingent upon the Buyer executing a lease with the Ventura County Health Care Agency, subject to approval by the Ventura County Board of Supervisors, and the purchase of Lots 3, 4 and 5 will be contingent upon the Buyer having obtained leases which support financing for additional facilities.

Harold Edwards, President and Chief Executive Officer, stated, "We are very pleased to move to a letter of intent for the sale of approximately 25 acres strategically located close to our Harvest at Limoneira development project. This opportunity provides upside to our initial expected cash flow of $80 million from Harvest at Limoneira. The planned establishment of a medical campus on this land will be another large attraction for Harvest at Limoneira, adding to the long-term success of this project and to the residents of Santa Paula and Ventura County."

"We are extremely grateful for Limoneira's long-standing commitment to the health and prosperity of the local community," said Mike Powers, Ventura County Executive Officer. "This is a major step in building a state-of-the-art acute care hospital and health campus that will provide excellence in care for community members in Santa Paula, Fillmore, the Santa Clara Valley and the county for many generations."