- Ultima United (UUL) has signed a letter of intent with Infinity Capital Group Japan Development to purchase three lots of land in Niseko, Japan
- The land sits within a 17-lot real estate development project, known as TELLUS Villas, which covers a total of 34,000 square metres
- As part of the transaction, Infinity Group is expected to be appointed as project managers for TELLUS Villas and will be responsible for sourcing and managing the construction of the project
- In conjunction with the deal, Ultima is looking to raise almost $20.2 million by issuing roughly 33.65 million shares at a price of $0.60 each
- Shares in Ultima United are currently suspended and last traded at a price of $0.50 per share on December 23
Ultima United (UUL) has signed a letter of intent with Infinity Capital Group Japan Development to purchase three lots of land in Japan.
Located in Niseko, a popular ski resort town in Hokkaido, the land sits within a 17-lot real estate development, known as TELLUS Villas, which covers a total of 34,000 square metres.
Each lot measures in excess of 1,300 square metres and will be developed into a luxury multi-storey residential villa with around 500 square metres of living space, four bedrooms and various amenities.
As part of the transaction, Infinity Capital is expected to be appointed as project manager for the TELLUS Villas, and will be responsible for sourcing and managing the construction of the project.
Once construction begins, the villas will be marketed in off-the-plan sales in Niseko’s real estate market.
Ultima will now look to engage in more formal agreements with Infinity Capital, which will set out more in-depth terms for the deal as well as a firm project management arrangement.
“This new development project is an exciting first step of the company’s expansion plans beyond Australia and into the Asia-Pacific,” Ultima said in a statement yesterday.
“The Board believes that embarking on this project will bring about new and greater opportunities for the company in the new year and in the years to come.”
In connection with the acquisition, Ultima is looking to raise almost $20.2 million by issuing roughly 33.65 million ordinary shares at a price of $0.60 each.
Approximately $6.35 million will be used for the purchase of the land, with more than $12.98 million to be set aside for construction costs.
Since TELLUS Villas is owned by Infinity Capital, and Infinity Capital is an affiliated company of Infinity Capital Group Australia Development – a significant shareholder of Ultima – shareholder approval will be required for both the land acquisition and the financing.
Ultima said it expects to receive this approval at a meeting scheduled for the first quarter of next year, with the land acquisition anticipated to close in the second.
Shares in Ultima United are currently suspended and last traded at a price of $0.50 per share on December 23.