CLARKSDALE, Miss., Aug. 17, 2005 (PRIMEZONE) -- Superior Development Group, Inc. (Pink Sheets:SDVG), a leading provider of affordable housing, announced today that it has received a $200 million financial commitment from Delta Housing Finance LLC to be used for the development of future affordable housing projects or the acquisition and rehabilitation of existing affordable housing properties. The company will earn development fees, construction income, income from the sales of affordable homes and potential additional incentive income. Revenues from the financial commitment are expected to exceed $120 million over a three-year period.
With the new financial commitment in place, Superior Development will develop and/or acquire approximately 5,000 units of single-family and multi-family housing. "We are excited to have received this financial commitment from our affiliate, Delta Housing Finance, which has provided financing for us in the past," stated Derrick D. Neal, chief executive officer of the company. "With this new financial commitment, we now have the opportunity to increase our development pipeline and also to substantially increase our revenues, which will aid in our future growth potential." Under the financing commitment Delta Housing Finance LLC will issue tax-exempt or taxable revenue bonds and loan the proceeds to Superior Development. Mr. Neal went on to say, "The company will immediately draw down under the financial commitment to develop two 90-unit affordable single-family subdivisions: one in Batesville, Mississippi, a fast-growing community located on U.S. Interstate 55 in northern Mississippi, and in Tunica County Mississippi, the second largest casino gaming area in the U.S."
About Superior Development Group
Superior Development Group, Inc. is a publicly traded multi-faceted real estate development, construction-operative builder and sales company. The company's development efforts are focused in four major areas of the housing market: development of affordable lease-to-purchase single-family residential development, development of affordable multi-family rental housing, acquisition and development of raw land for subdivision development and the acquisition and rehabilitation of existing multi-family and commercial properties.
About Delta Housing Finance LLC
Delta Housing Finance LLC is a conduit issuer of single-family and multifamily housing revenue bonds. Proceeds from bond issuances are loaned to developers of affordable housing.
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