Pure Cycle CorporationPCYO announced that it has entered into agreements with three national home builders for the sale of lots at Sky Ranch. In 2010, the company purchased nearly 931 acres of undeveloped land located in unincorporated Arapahoe County. Known as Sky Ranch, it is located four miles south of Denver International Airport.
Details of the Agreement
Pure Cycle has entered into agreements with Richmond American Homes, KB Home, and Taylor Morrison for the sale of all 506 single family lots in its first phase of Sky Ranch. The prices range from $67,500 to $75,000 depending on lot size and the specific terms and conditions of the agreements with each builder.
The agreements provide for a 60-day due diligence investigation. After this, Pure Cycle will finalize designs for the community, including the Final Platted lots, roadways, open space, drainage, water and wastewater systems.
Apart from lot sales, the company will collect water and wastewater tap fees for each lot, which will be paid at the time the builders obtain building permits.
Planned Community Yields Result
Pure Cycle has systematically planned the development of Sky Ranch community. It can accommodate 4,400 family homes and has space for 1.35 million sq. feet of commercial activities. Post development, the entire Sky Ranch property could generate $144 million in water and wastewater fees for the company.
The decision to sell off lots in Sky Ranch will unlock the value tapped in the assets in Sky Ranch.
Shares of Pure Cycle have returned 50% year to date compared with the Zacks categorized Water Supply industry's gain of 6.1%.
The company, through its vertically integrated wholesale water & wastewater business, is well poised for growth and efficiently serve its government customers and other end-use customers.
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