MI Developments Announces Acquisition of Florida Property

MI Developments announced March 28 that it has purchased from subsidiaries of Magna Entertainment a 157-acre development property in Palm Beach County, Fla., adjacent to MEC's Palm Meadows Training Center, for cash consideration of $35 million.

In addition, MID granted MEC the right to receive a one-time profit participation payment in respect of any sale or development of the property equal to 15% of the marginal net proceeds on such property after MID achieves a 15% internal rate of return. MID, which is the parent company of MEC, intends to develop the property, either for its own account or as part of a joint venture arrangement, for residential purposes.
The property in 2005 was put under contract with residential developer Toll Brothers for $51 million , but the agreement was terminated last year, due in part to opposition from Palm Beach County over the potential buyer's development plans.