GreenBank Capital subsidiary's portfolio company invests in the carbon-neutral development of a UK town

GreenBank Capital Inc (CSEGBC) (OTCPINK:GRNBF) (FRA:2TL) has announced that The Substantia Group, a subsidiary of GreenBank portfolio company Staminier Ltd, has reached a multiphase deal to build a carbon-neutral development in a UK town.  Phase one of the plan is to agree, with both local and national governments, on which of three possible areas to build 3,500 residential units, a university, retail and hospitality units (including hotels, restaurants and bars), along with supporting transport and infrastructure modernization.  The idea is to include a mixture of facets that are attractive to people in the local community, as well as buyers and visitors from elsewhere. Substantia hopes it will be seen as a major contribution to the UK's "Global Britain" objectives, as well as the goals of the Thames Estuary Growth Board, which describes the region as the UK's number one growth opportunity.  READ: GreenBank Capital wins ‘Most Innovative Global Merchant Bank’ in Canada award from CFI.co Phase two of the project will be to partner with international developers to obtain detailed planning and zoning permission; phase three will be to move forward with the city development in partnership with international developers and large institutional or sovereign wealth funds; and phase four is the sale of the real estate.  "This exciting and major real estate project has very great potential and highlights again how the innovative GreenBank approach of blending unicorn investments with asset backing sets us apart as an innovate global merchant bank for the future, as recently recognised by Capital Finance International presenting us with the 2021 award for ‘Most Innovative Global Merchant Bank in Canada,’” GreenBank CEO David Lonsdale said in a statement. Substantia already has an existing portfolio of development projects, as both a principal and an adviser, exceeding £800 million (C$1.4 billion) of gross development value (GDV). This project, when successfully completed, is expected to have a GDV of even higher.  "We are proud and committed to be leading this truly unique opportunity, with our distinguished and proven team, to creatively regenerate a stunning location into a highly desirable destination to live, learn and work in harmony with the natural environment,” Substantia CEO Terry Pullen said Substantia has agreed to invest up to £500,000 (C$855,000) during phase one in return for up to 37.5% of the project company and to provide a secured loan of up to £7 million (C$12 million) during phase two. Half the investment is in ordinary shares, while the other half is in redeemable preference shares. On a successful exit greater than £50 million (C$85.5 million) the secured loan would be repaid together with a gain of 250% as well as of up to £250,000 for the subscribed preference shares. The remaining proceeds would be split pro rata between the shareholders so that Substantia also received 37.5%. GreenBank currently owns 19% of Staminier with an option to acquire 100% and has announced a desire to exercise the option subject to any necessary regulatory and other approvals. Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel